Serbia's WAICO Gamble: Why Joining China's AI Body May Cost More Than It Gains
Serbia joined the World AI Cooperation Organization (WAICO) in July 2026 but appears to have secured no concrete deliverables, financial obligations, or technology access in return, while potentially jeopardizing its €4.55 billion annual ICT services export sector that depends heavily on Western markets and partnerships.
What Exactly Did Serbia Sign Up For?
On July 16, 2026, one day before the World Artificial Intelligence Conference opened in Shanghai, representatives from twenty-nine countries, including Serbia, signed the founding agreement establishing WAICO. The organization was first proposed by Chinese Premier Li Qiang at the 2025 edition of the same conference and is headquartered in Shanghai. Its stated purpose is to promote international cooperation and governance on artificial intelligence while pursuing what it calls a "people-centred" approach with particular attention to closing the technology gap between wealthy and developing nations.
However, independent assessments published since the signing reveal that WAICO remains remarkably thin on substance. The full charter text has not been released publicly, the secretariat's staffing and funding remain undisclosed, no budget or schedule of member contributions is public, and it remains unclear whether the organization can actually issue standards, certify systems, or conduct evaluations. What China has concretely offered members is modest: 5,000 AI training places for Global South participants over five years, cooperation centers with regional organizations like ASEAN and the African Union, and an AI-driven extreme-weather early-warning system.
Serbia's membership stands out for its isolation within Europe. The European contingent consists of only Serbia, Belarus, and Russia. No EU member state, no G7 economy, and no other EU candidate country signed the agreement. Turkey, Poland, Greece, Italy, and Germany, states with which Serbia routinely benchmarks itself, instead signed the American AI Opportunity Statement in June 2026.
Why Would Serbia Join Without Clear Benefits?
Three arguments for participation have merit and deserve serious consideration. First, WAICO offers access and optionality without values-based screening, which appeals to a country that has repeatedly found Western forums conditional. Second, Serbia has genuine bilateral leverage with China; Chinese investment in Serbian industry is substantial and real, with the May 2026 Beijing visit producing more than thirty agreements and memoranda, including an AI cooperation memorandum signed by Serbia's Office for IT and eGovernment with China's National Development and Reform Commission. Third, some Serbian technologists argue that a Chinese-led body lowers the price of AI capability for states that cannot afford Western subscription models.
However, these arguments collapse when measured against what Serbia already possesses. Serbia's National AI Platform at the Kragujevac State Data Centre is NVIDIA-based, was recognized by the OECD in 2023 as one of the most innovative public-sector projects worldwide, and is being expanded through a roughly €50 million project developed with France around 640 NVIDIA Grace Hopper superchips. Serbia chaired the OECD-hosted Global Partnership on AI from December 2024. Serbia's AI Development Strategy for 2025 through 2030 is explicitly aligned with the European Commission's AI framework, as EU candidacy requires. The genuinely productive infrastructure, the compute resources, the research partnerships, and the regulatory destination are all Western.
How to Evaluate Serbia's Real Economic Interests
- Export Dependency: Serbia exported €4.55 billion in information and communications technology services in 2025, making technology one of the country's most important export industries, while the United States is already Serbia's largest ICT trading partner.
- Market Access Risk: Serbian software developers, engineers, and technology companies depend heavily on access to the Western digital economy, making protection of that relationship more important than acquiring another seat in an international AI forum.
- Regulatory Alignment: The EU AI Act became fully applicable on August 2, 2026, and Serbia's regulatory destination is Western; an open, democratic society cannot treat competing models of digital governance as normatively interchangeable.
What Are the Concrete Costs of Serbia's Decision?
The most acute risk emerged just one month after the signing. On August 14, 2026, Reuters reported an undated State Department draft letter to the thirty-five signatories of the June AI Opportunity Statement stating that the Pax Silica commitment "cannot be held alongside membership in duplicative initiatives whose expectations conflict with our own," with the blunt formulation that "to be part of everything is to be part of nothing". A US official told Reuters the intent was to make clear that countries cannot have it both ways. While the letter is undated and unsent, its logic is unambiguous: Washington now treats AI bloc membership as a trust test with consequences for chip access and supply chain co-investment.
Reuters
Serbia's exposure here is particularly acute. Serbia has signed neither the Pax Silica Declaration nor the AI Opportunity Statement, while the European Union signed the former in June 2026. Belgrade has therefore managed to acquire the reputational cost of alignment with China without the hedging benefit of maintaining Western partnerships. Kazakhstan, by contrast, is listed in both the twenty-nine member WAICO body and Washington's AI Opportunity Statement, giving it genuine optionality. Serbia holds no comparable leverage.
Adding to this vulnerability, no Serbian signatory was publicly identified at the signing, and no substantive government statement followed the agreement. Domestic coverage ran largely off Xinhua and Sputnik wires, suggesting that the Serbian government did not explain the decision to its own public. A founding membership in an intergovernmental organization that the government does not explain to its own citizens is a poor bargain in any framework of accountability.
What Does This Mean for Serbia's Future?
The ledger is starkly unbalanced. Serbia has assumed no verifiable financial obligation, no binding regulatory commitment, and no technology procurement requirement through WAICO. In narrow legal terms, skeptics who call this a photo opportunity are largely correct. But the signature's value to Beijing was never contractual; it was geopolitical. WAICO's public materials explicitly state that coordinating technical standards is part of the agenda, and Brussels analysts read the body primarily as an instrument for shaping who sets infrastructure norms and digital ecosystems over the coming decade. Serbia supplied a European datapoint for a Chinese-authored governance architecture at almost no cost to Beijing and with no identified deliverable for Belgrade.
For Serbian businesses, the calculation is simpler still. The relevant national interest is not acquiring another seat in an international AI forum, but protecting access to the markets, technologies, investment, and regulatory ecosystem on which Serbia's most successful services export sector already depends. If WAICO provides no comparable market access or commercial benefit while creating even a marginal risk to that relationship, Serbia has little economic reason to assume that risk.