As we wrote, the Chinese President will arrive in Hungary on Wednesday. Xi Jinping's visit has historical significance.
He pointed out, “The relationship between the two countries has been crucial for centuries, but until recently it was difficult to talk about an intense relationship, so it was necessary to redefine it.” In his analysis Oconomos Foundation for Economic Research.
This has led to:
In 2023, out of the record amount of EUR 13 billion of working capital investments coming into Hungary, China once again became the largest investor in Hungary with 7.6 billion.
South Korea came in second place with foreign direct investments worth 2 billion euros. “Competition is emerging for positions in Hungary, and what's more is that they are often in the same sectors,” the Economic Research Foundation noted. “While the western half of Europe is choosing to deindustrialize, Chinese factories have opened one after another in Hungary recently, pinning the necessary part of the value chain on the edge of the closed Western world,” they explained.
It is beneficial for both parties
“Chinese companies and banks establishing themselves in our country are also regional hubs. Cooperation is beneficial to both parties, and cultural and economic exchange between the two countries can further strengthen relations. In the past two years, only three European countries are ahead of us in terms of the volume of Chinese investments.”
Earlier, the Minister of National Economy, Marton Nagy, spoke about something similar. On May 3, the portfolio manager also gave an interview to a leading Chinese news agency, where he highlighted the presence of the Bank of China in Hungary.
Hungary and China have always treated each other with mutual respect and equality, and, among other things, have established and consolidated good traditional friendship, mutual political trust and fruitful economic, trade and humanitarian cooperation, and the Hungarian side is willing to actively promote the comprehensive partnership. The strategic partnership between the two countries to advance development to a new level
Marton Nagy said, according to Xinhua Agency: The minister also touched on China’s achievements in the field of electric transformation: He considers them exemplary of how the country develops companies and infrastructure at the same time and encourages people to buy electric cars.
The eastern opening can also be seen in numbers
A decade ago, 26% of our foreign direct investment stock came from Germany I gushedToday, this percentage has decreased to 17 percent.
If we expand the horizon, the picture becomes more changing. Oekonomos noted that in 2023, China, South Korea and Japan accounted for a combined 82 percent of new FDI, indicating a clear shift from the decisive weight found in Western value chains to a presence in Eastern value chains as well.
the Belt and Road The leading European initiative for this initiative is the development of the railway line between Budapest and Belgrade, which has already reached an advanced stage. Oikonomos noted that the Opening to the East policy, announced in 2012, attracted several major Chinese investments to the country.
“In terms of investment value, electric vehicle production and related sectors that promote the green transition, such as battery production, stand out, so the entire ecosystem is already being developed.” The most important projects are the following:
- Battery manufacturer CATL in Debrecen, valued at 3,000 billion forints,
- The car manufacturer BYD is worth about HUF 2,000 billion in Szeged,
- 580 billion Hungarian forints Sunwoda Nyíregyháza,
- Battery maker Huayou Cobalt is valued at 520 billion forints,
- Battery manufacturer EVE Power is worth 400 billion forints in Debrecen
- Or SEMCORP's investment in Debrecen rose to 130 billion HUF.
“BYD is actually a conglomerate because it maintains lithium mines, processes the raw materials for production itself, assembles the batteries in its vehicles, and produces the necessary chips,” the analysis noted.
BYD competes with Tesla for the title of the world's largest car manufacturer, and has been producing electric buses in Komarom for years. The Hungarian production plant of Yanfeng, one of the world's leading automotive suppliers, is located in Baba, and soon Zhejiang Shuanghuan Driveline will produce components for electric vehicles in Jászfényszarun.
After Hungary became the first country in the European Union to join the Belt and Road Initiative, Hungarian departments were established one after another in elite Chinese universities over the course of a few years, and currently dozens of Chinese universities offer Hungarian majors.
– He pointed to the Economos.
“The two peoples have been good friends for seventy-five years, and we are learning from each other,” Chinese President Xi Jinping said in an opinion article published on the Hungarian Nemzit website on Wednesday. Sino-Hungarian friendship is like a good Tokaj wine: fragrant, sweet, strong and long-lasting.
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