Technology, economic growth of China to benefit Hungary, official says

China's technology and economic growth will benefit Hungary, said Hungarian Investment Promotion Agency (HIPA) CEO Istvan Joo. 

The two countries announced on Thursday the decision to elevate bilateral relations to an all-weather comprehensive strategic partnership for the new era. A joint statement on the partnership said the two sides are committed to enhancing synergy between the Belt and Road Initiative (BRI) and Hungary's "Eastern Opening" policy.

The two agreed to establish an inter-governmental cooperation mechanism on the China-Europe Railway Express, both speaking highly of the development of the China-Europe Railway Express. They are willing to actively promote the construction of the Hungarian section of the Hungary-Serbia Railway, and jointly promote high-level connectivity in Central and Eastern Europe, according to the statement.

China and Hungary agreed to promote infrastructure connectivity, and jointly take practical measures to ensure the security of the transport routes and improve the quality and efficiency of the China-Europe Railway Express, so as to provide important support for deepening economic and trade cooperation between the two countries, said the statement.

The Hungary-Serbia Railway is a landmark project under BRI cooperation, and also a flagship project of cooperation between China and Central and Eastern European countries, according to the joint statement.

Hungary has been bringing together German carmakers and Chinese battery producers, Joo added. Chinese electric vehicle (EV) maker BYD has announced a plan to build a new energy vehicle production base in the southern Hungarian city of Szeged.

"It is a special joy for us that BYD eventually chose Szeged," he said, noting that the automotive industry and the supply chain associated with it are crucial for the Hungarian economy.

Joo also highlighted that Hungary's "Eastern Opening" policy has yielded fruitful results. Since adopting the policy, Hungary has been eager to foster much more intensive economic cooperation with Eastern countries, primarily with China, he said, adding that the excellent political relations between the two countries have laid a solid foundation for such cooperation.

Last year, Hungary received a record volume of 13 billion euros (about $14 billion) in foreign direct investment, including over 7.6 billion euros (around $8.2 billion) from Chinese investors, according to a HIPA report. In 2023, China became the largest investor in Hungary once again after 2020, the report said.

Joo said his agency is currently working to direct new investors to the parts of the Eastern European country where "significant labor reserves are still available," adding that he would be pleased to see more Chinese investors in the southern regions of the country.

(With input from Xinhua)