Xi Jinping’s visit to Hungary is primarily focused on ensuring that Hungary can help China gain market share in the EU. As Beijing and Budapest prepare to sign a total of 16 bilateral agreements, the Chinese president arrived in Budapest as the third and final stop of his European visit. During his three-day stay, Xi Jinping and his delegation are expected to conclude a series of economic agreements with Budapest, as China sees Hungary as an important bridgehead in conquering European markets. Chinese companies are involved in building electric car and battery factories in Hungary, and the two sides are expected to sign agreements related to infrastructural developments, railway, road, and energy projects as part of Beijing’s Belt and Road Initiative.
One of the key projects that China is involved in with Hungary is the renovation of the Budapest-Belgrade railway line, which is considered a symbol of China’s economic expansion in the country. The railway project is part of the planned Budapest–Belgrade–Skopje–Athens railway, which aims to help Chinese goods reach Western Europe faster than ever. However, the project has faced criticism for various reasons, including questions about whether the imported technology to operate it complies with EU standards. Critics have also raised concerns about the financial aspects of the railway project, with some pointing out that the Chinese credit for its construction might take a century to pay back in full, while the return on investment is uncertain.
Personal interests and corruption also play a role in the huge investments that China is making in Hungary, according to international relations and Hungarian politics expert Csaba Káncz. Káncz suggests that the Hungarian regime has entered into a ‘strategic corruption’ framework agreement with China, similar to the situation with Russia and overpriced gas. He also notes that Hungary has aligned itself with what he calls the ‘peace camp’, which includes revisionist, pro-war powers like Russia, China, and Iran. Káncz believes that China has become the dominant power in the Eurasian axis and views Hungary as a new colony, with Xi Jinping’s visit serving not only as an investment opportunity but also as a security policy alliance.
Despite the growing economic ties between China and Hungary, EU officials have expressed concerns and are looking to limit China’s economic aspirations in Europe. The European Commission has launched an investigation into Chinese state subsidies for manufacturing electric vehicles and solar panels, accusing Beijing of distorting market competition. This investigation signals the EU’s efforts to safeguard its economic interests and ensure fair competition in the market. As Xi Jinping continues his visit to Hungary and strengthens ties with the country, the geopolitical implications of China’s increasing presence in Europe and the potential challenges it poses to EU policies and regulations remain a topic of concern for European officials and observers.
