China’s big investment in Hungary. Budapest is strengthening relations with Beijing

Luc Williams

China’s investment in Hungary

The production line for components for electric cars is to be built in the city of Hatvan, approximately 40 km east of Budapest.

Szijjarto announced that the investment will also include research and development of new technologies. According to his ministry, Xinzhi will produce one of the electric motor components in Hungary. The investment value is approximately 50 billion forints (approx. PLN 515 million). About 900 jobs are to be created.

Budapest and Beijing are getting closer

Hungary and China have been strengthening relations since 2010, when the current prime minister came to power in Hungary. Viktor Orbán. Analysts point out that his pro-Chinese sympathies have not changed even after the Russian aggression against Ukraine, which contributed to strengthening strategic cooperation between Beijing and Moscow. Orban presented his attitude towards China in July last year, when, during his annual meeting with Hungarian youth in Baile Tusnad, Romania, he described China as “a country liberating hundreds of millions of people from poverty using a successful socio-economic model.”

At the same time, experts point to Budapest’s ever-increasing dependence on Beijinge.g. by concluding new contracts and economic arrangements. In the first half of 2024 alone, Hungary signed nearly 20 contracts with China, which included, among others: expanding cooperation in nuclear energy and strategic infrastructure projects such as the construction of highways and railways. Hungary’s debt to Poland is also constantly growing Middle Kingdom. According to Hungarian media, in the second half of last year, Budapest’s debt to Beijing exceeded EUR 2.53 billion.

The increasingly closer relations between the two countries are being criticized not only by the Hungarian opposition, but also by Budapest’s Western partners – especially in NATO and the European Union, where Hungary is increasingly referred to as “China’s European foothold”.

Tomasz Dawid Jędruchów (PAP)

About LUC WILLIAMS

Luc's expertise lies in assisting students from a myriad of disciplines to refine and enhance their thesis work with clarity and impact. His methodical approach and the knack for simplifying complex information make him an invaluable ally for any thesis writer.