Devendra Kumar
Chinese President Xi Jinping concluded his European tour with a visit to Hungary, where he met with Prime Minister Viktor Orban to strengthen economic and cultural ties between the two nations. The trip is seen as an effort to solidify China’s economic footprint in the region, with Hungary serving as a crucial foothold for Beijing inside the European Union. Orban praised the “continuous, uninterrupted friendship” between the two countries since his tenure began in 2010, and promised to provide fair conditions for Chinese companies investing in Hungary. Hungary is already a significant beneficiary of Chinese investment, with billions of dollars poured into the country since Orban’s government took office.
The two leaders signed a strategic partnership agreement and 18 other agreements and memoranda of understanding, although no major investments were announced. However, discussions did begin on potential future projects, including a freight railway bypass of Budapest and a rail link between the capital and Budapest Ferihegy Airport. Hungary is also hosting several Chinese electric vehicle battery plants and hopes to become a global hub of lithium ion battery manufacturing.
Orban noted that three quarters of investments in Hungary last year came from China, and hailed Beijing’s role in the world’s shifting balance of power. He spoke of the importance of expanding economic co-operation with China to the field of nuclear energy, with Hungary currently working with Russia on adding a new reactor to its Paks nuclear facility. The Hungarian prime minister also praised China’s Belt and Road Initiative, saying it is “highly consistent with Hungary’s strategy of opening to the east”.
The visit was not without controversy, with both supporters and critics of Xi’s presidency gathering at various points in Budapest to demonstrate. However, hundreds of people gathered near the Buda Castle to wave Chinese and Hungarian flags, hoping to catch a glimpse of Xi’s motorcade. The visit marked the culmination of a five-day European tour that also took in Serbia and France.