The Sino-Balkan wars were a series of energy conflicts fought between China and Yugoslavia in the 1980s. Since the 1960s, Yugoslavia had been in an economic trade deal with Egypt, holding sole ownership of Egyptian oil fields and mineral reserves. In 1979, the new Egyptian prime minister Bashar Ali launched a new trade deal with China, offering the PRC ownership of newly discovered petroleum fields and mineral deposits. Yugoslavia reacted by invading Egypt in February of 1980. In response, China launched airstrikes on Yugoslavian cities and military bases, and launched a ground invasion of the country with 252,000 troops.
The Afro-Balkan free trade zone was formed in 1962. The agreement allowed Yugoslavia sole ownership of oil and mineral reserves in developing Egypt, in return for investments in infrastructure in the developing African country. The Yugoslavian government used the resources to expand its growing industrial base.