China–Montenegro relations
People's Republic of China has officially recognized Montenegro on June 14, 2006.[1] China has several projects of investments in the field of construction of highways, power plants and other infrastructures.[2] In 2018, it was reported that a Chinese loan for the first phase of a highway designed to link the Port of Bar on Montenegro's Adriatic coast to landlocked neighbor Serbia sent Montenegro's debt soaring and forced the government to raise taxes, partially freeze public sector wages and end a benefit for mothers.[3] Despite those measures, Montenegro's debt was expected to approach 80 percent of gross domestic product (GDP) in 2018 and the International Monetary Fund said the country could not afford to take on any more debt.If Montenegro were to default, the terms of the contract give China the right to access Montenegrin land as collateral.