He said Serbia has been able to position itself as a destination with the lowest production costs in Europe and a high availability of labor with technical skills.

Economic growth in Central and East European nations has created many business opportunities for Chinese companies and investors, he said.

Xiang Junyong, an international relations researcher at Renmin University of China, said Xi's visit will bring more Chinese investment to Serbia, where many Chinese companies have contracts to build rail, highway and bridge projects.

Sinisa Mali, the mayor of Belgrade, told China Central Television the two countries will sign an agreement worth 500 million euros ($561 million) on investment in the city's sewage facilities. A Chinese company will also build an industrial park in Belgrade, he said, without disclosing the company's name.

Liu Haixing, assistant foreign minister, said Xi will visit the Smederevo steel mill, which was founded in 1913 and acquired in April by Hesteel Group, China's largest iron and steel business group in terms of production capacity.

In 2009, Serbia became the first country in Central or Eastern Europe to establish a strategic partnership with China.

In September last year, Serbian President Tomislav Nikolic and troops from the European country attended the parade in Beijing marking the 70th anniversary of victory in the World Anti-Fascist War.