Economic Relations with China Have Reached a New Level

“Over the past decade, Hungary has established itself as a bridge for economic cooperation between Europe and China,” stated Minister of Finance, Mihály Varga, following talks with his Chinese counterpart, Minister Lan Fo’an in Beijing.

Highlighting China’s role as Hungary’s largest investor outside Europe and its most significant trading partner, Mihály Varga emphasized the strengthening financial ties between the two nations.

The Minister emphasized the need to foster economic collaboration rather than resorting to isolation. He reiterated the commitment to continue the policy of opening up to the East, which has led to an ongoing enhancement of economic relations between Hungary and China.

Recent statistics reveal China as Hungary’s 9th most important trading partner, accounting for 4 percent of its total foreign trade and making it the country’s foremost partner outside Europe.

Mr. Varga underscored China’s significant contribution as the largest source of investment in Hungary last year, culminating in Hungary emerging as the top European destination for Chinese investments. Notable among these investments are CATL’s HUF 3,000B (EUR 7.5B), Huayou Cobalt’s HUF 520B (EUR 131,6M)  and BYD‘s multimillion-euro investments in Szeged, southern-Hungary.

Hungarian-Chinese trade between 2004-2023. Picture: MTI

In addition to investment, Mihály Varga and the Chinese Minister of Finance reached an agreement to further develop infrastructure links, particularly in direct air transport. This agreement strengthens Hungary’s position as a logistics hub in Central and Eastern Europe, evidenced by the recent agreement to introduce a new regular air cargo service.

Discussing the modernization of the Budapest-Belgrade railway line, Minister Varga highlighted the trilateral cooperation between Hungary, China, and Serbia, emphasizing its importance as a vital link in the railway connection.

This initiative offers the fastest alternative for freight transport between Western Europe and the Greek port of Piraeus.

Recognizing China’s status as the world’s second-largest economy, Minister Varga stressed the importance of bolstering economic, logistical, and financial ties between Hungary and China, as well as attracting high-tech investments. These efforts are poised to significantly contribute to Hungary’s economic growth in the years ahead.

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Via MTI; Featured Image: Pixabay

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