Photo: iStock
György Szalma
31/03/2025 17:17
China is famously pragmatic when it comes to establishing economic relations. Nevertheless, strong intergovernmental cooperation can significantly ease a partner country's entry into the Chinese market. Hungary enjoys a unique position in this regard, a fact emphasized during Xi Jinping’s visit in May 2024. During this visit, the Chinese president announced that relations between the two nations had officially reached the level of an All-Weather Comprehensive Strategic Partnership for the New Era.
Following this announcement, it was expected that, alongside major industrial investments, economic cooperation would expand in other areas as well. After the meeting, it was revealed that Viktor Orbán and the Chinese president had signed 18 agreements, some of which included the export of Hungarian agricultural products to China. This is particularly significant given that Hungary already held the most export licenses to China among Central European countries.
In previous years, Hungarian foie gras, Tokaji Aszú wine, Mangalica pork, and feathers were the most sought-after exports. Beyond these, Hungary also holds export licenses for pork, goose, duck, beef, and rabbit meat; day-old ducklings and goslings; breeding duck and goose eggs; raw wool; live horses; milk; wheat; feed corn; and cherries. Hungary’s seed breeding and production sector also has great potential, as does the agricultural research conducted at its universities. Notably, in December 2023, China’s Deputy Minister of Natural Resources, Zhuang Shaoqin, visited Gödöllő to discuss potential collaboration with the leaders of the Hungarian University of Agriculture and Life Sciences (MATE). This underscores China's interest not only in fresh Hungarian produce and fine wines but also in Hungarian expertise and know-how.
From a strategic standpoint, strengthening economic ties with Hungary is in China’s own interest as well. Whether in agriculture, manufacturing, or trade, Hungary serves as a gateway to Central Europe and the European Union. Maintaining and potentially expanding these positions benefits both sides.
The stars seem to align for Hungarian agriculture. Since large quantities of goods arrive in Hungary from China, logistics presents a major opportunity—many cargo transport vehicles return to China with low capacity utilization. This offers an excellent chance for Hungarian businesses to find cost-effective ways to export their products.
However, it must also be acknowledged that in terms of volume, Hungarian products cannot become dominant in the Chinese market. Significant profits cannot be achieved solely by exporting raw materials. For Hungary’s agricultural sector, the real opportunity lies in the production and sale of premium products. China can already produce everything it needs, but its 600-million-strong middle class has a growing demand for unique, high-quality products. Hungarian producers must leverage the existing Hungarian brand’s popularity and engage in brand-building that ensures the long-term presence of Hungarian agricultural products on Chinese store shelves.
The author is a journalist.