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Economy

(Economic observation) China Hungary economic and trade cooperation is moving towards a higher level

2024-05-11   

Among them, strengthening investment cooperation and deepening cooperation in jointly building the "the Belt and Road" are particularly noticeable. According to the joint statement between China and Hungary on establishing an all-weather comprehensive strategic partnership for the new era, Hungary welcomes more Chinese enterprises to invest and develop in Hungary, and is willing to create a good investment and business environment for it. China will also continue to encourage capable Chinese enterprises to invest in Hungary. Chinese companies investing in Hungary are currently in high demand. Hungary is currently the primary destination for Chinese investment in Central and Eastern Europe, and in 2023, China will once again become Hungary's largest foreign investor. Among them, new energy is a major hotspot for Chinese enterprises to invest in Hungary. Among the top ten global power battery manufacturers, four Chinese companies, CATL, BYD, EVE Lithium Energy, and Xinwangda, have landed in Hungary. Especially since 2020, driven by leading enterprises, Chinese new energy vehicle manufacturers, lithium batteries, and component manufacturers have competed to invest and establish factories in Hungary, gradually integrating into the European new energy vehicle industry supply chain through increasingly interconnected "single points". This joint statement proposes that China and Hungary will orderly promote cooperation in the field of clean energy, and the two countries have also signed a memorandum of understanding to promote investment cooperation in the field of green development. Observations suggest that Hungary welcomes Chinese enterprises to invest in Hungary, which is beneficial for Chinese new energy vehicles and their supply chain enterprises to efficiently utilize overseas resources on a larger scale, promote the healthy development of new energy vehicle trade and investment, and also help Hungary climb to a more important position in Europe's electric vehicle power pool production, become a hub for economic and technological convergence between the East and the West, and achieve a higher level of win-win situation. Deepening cooperation in jointly building the "the Belt and Road" is also a major focus of China Hungary cooperation in the economic and trade field. According to the statement, China and Hungary are committed to strengthening the docking of development strategies under the framework of the "the Belt and Road" initiative and Hungary's "opening to the east" policy, and promoting high-quality cooperation on the "the Belt and Road". The statement stated that both sides are willing to actively promote the construction of the Hungarian section of the Hungary Serbia Railway project, and agree to establish a cooperation mechanism between the two governments for China Europe freight trains, jointly taking practical measures to ensure the safety of the China Europe freight train transportation channel. At present, the China Europe freight train from the Beijing Tianjin Hebei region to Hungary has achieved normal operation. Hungary is the first European country to sign the "the Belt and Road" intergovernmental cooperation document with China, and the high-quality joint construction of the "the Belt and Road" is one of the important keys to the continuous upgrading of China Hungary cooperation. According to media reports, from one detail, we can feel the upgrading of China Hungary cooperation in the "the Belt and Road": the first China EU train from Xi'an to Budapest in 2017, mainly carrying small commodities in Yiwu, Zhejiang; Nowadays, the China Europe freight trains mainly transport cars, photovoltaic modules, and mechanical equipment exported from China. Liu Zuokui, Deputy Director of the Institute of European Studies at the Chinese Academy of Social Sciences, believes that the logic of cooperation between China and Central and Eastern European countries is mutual necessity. In the future, Central and Eastern European countries will face the situation of transition to livelihood politics, and the focus of the joint construction of the "the Belt and Road" is the economy and people's livelihood. This means that China will join hands with them to promote the "the Belt and Road" cooperation

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