Photo: AFP/Handout
Ádám Samu Balázs
08/01/2025 06:02
„The will to win, the desire to succeed, the urge to reach your full potential... these are the keys that will unlock the door to excellence
”
Celebrating 75 years of bilateral diplomacy
Hungary aims to position itself as a key state of the new world order of the 21st century, aware of its relative size and thousand-year history. This new world order will include an ever emerging, stronger China. In the months that have passed since Chinese President Xi Jinping's state visit to Budapest in May 2024, numerous Chinese delegations have arrived in Hungary, and Sino-Hungarian cooperation and friendship has continued to develop intensively. The historic meeting opened a new chapter in bilateral connections. We elevated our relations to an all-weather comprehensive strategic partnership. Strengthening ties between our two nations and fostering broader cooperation between East and West presents a mutually beneficial opportunity. Hungary recognized this potential early, becoming the first EU country to join the Belt and Road Initiative in 2015. The stability of our bilateral relationship is ensured by the fact that the cooperation between our countries covers almost all sectors, in addition to the economic, investment and trade areas, more and more results are being achieved in the tourism, education and culture segments.
Connectivity in action
We believe in advancing connectivity and aspire to serve as a bridge between the regions. One example is the role we play in supporting the renewal of the European market. Major Chinese companies chose our country as their European headquarters or set up their regional headquarters here. Western manufacturers require electric batteries, and thanks to forward-thinking policies and investments in Hungary, parts can now move seamlessly between neighbouring factories of Eastern and Western companies. To name a few, German car manufacturers Audi in Győr and Mercedes in Kecskemét have started producing electric cars, and the latest electric models will also be produced in the new BMW plant in Debrecen. EVE Power's new plant, which will be completed by 2026, will specifically serve the needs of the BMW factory. The production of battery cells will also begin at CATL in the factory under construction in Hungary. Electric car manufacturer BYD builds its first European factory in the Hungarian city of Szeged, and starts production by 2025. As the most modern technologies arrive, these investments contribute to the development of Hungary's competitiveness within Europe.
This is connectivity in action – we refer to this trade engagement as economic neutrality. Embracing dialogue and enhancing economic competitiveness will not only benefit Hungary but contribute positively to the entire European Union. A robust and well-established relationship between the European Union and China brings significant advantages to the people on both sides, supporting economic growth. Moreover, such a partnership contributes meaningfully to advancing global peace, ensuring stability, and driving prosperity across the international community.
A more independent, connected and competitive Europe
Former US Secretary of State Henry Kissinger famously formulated the question of whom to call when seeking to speak with Europe. Today, Brussels would likely suggest bypassing national capitals and instead would propose contacting the President of the European Commission or the head of another supranational institution. However, following the US elections, one of the first calls to Europe of President Trump was to Prime Minister Viktor Orbán, followed by continued discussions during an EU leaders' meeting in Budapest. His peace mission visiting Kiev, Moscow, Beijing and Washington in 10 days was also an example of the importance of diplomacy and the growing value of bilateral relations.
From a European and Hungarian perspective, President Donald Trump’s historic return to the White House signals a new dynamic. While at first glance it may look indifferent from a Sino-American trade perspective, a reshuffling of bilateral relations will certainly impact Europe. Despite potential tariffs, Trump’s leadership could bring a less ideologically driven and more pragmatic approach to business and diplomacy. This shift presents an opportunity for peace. During his previous term, President Trump notably refrained from starting new wars and repeatedly emphasized his intent to end the conflict in Ukraine swiftly. The arrival of a new American administration will bring changes in U.S. security policy also. For Europe, these changes poses both challenges and opportunities. The "America First" policy will likely force Europe to address its strategic autonomy. It must adopt policies that bolster its own industries and navigate its relationship with the rising Asian world. In this evolving environment, Europe will need to reassert itself as a more independent global actor.
Currently, Europe is falling behind both China and the US. The continent is facing geopolitical tensions, insecurity of supply chains and rising energy prices, economic curb. Asia’s economies are growing four times faster compared to those of the West, and the global economic midway has shifted eastward. Hungarian Prime Minister Viktor Orbán recently expressed during the Eurasia Forum in Budapest that Hungary must remain sharp, quick, and smart, always thinking ahead to ensure we don’t miss critical opportunities. He argued that Asian nations have emerged as independent economic and political powerhouses – ‘the liberal, progressive dominance within the Western world is over’.
As regards the European Union, critical opportunities were indeed missed in the past. In recent years, Europe has mishandled crises, with federal and ideology-driven institutions getting more power at the expense of member states. The will to win, the desire to succeed, the urge to reach full potential was missing. Centralization has hindered a more balanced and effective response to economic and structural issues. Hungary has long rung the alarm bells: we cannot rely on others to resolve our economic challenges. The Chinese proverb simply, but wisely notes: Distant water will not extinguish a nearby fire. Action is required. An economically weak union cannot create peace, prosperity and security either.
The way forward: The Budapest Declaration
Thanks to Hungary’s presidency of the Council of the European Union, a crucial shift has been achieved: European competitiveness is now recognized as a central priority requiring decisive action at European level. As Hungarian Minister for EU Affairs János Bóka puts it: the European Union must be able to define its own strategic interests and act accordingly. Above all, this requires a change of attitude, which is one of the priority tasks of the Hungarian EU presidency. Hungary’s success is highly linked to the success of the entire European Union. The competitiveness issue is not unique to any single member state; it is a shared challenge affecting all member states and EU institutions.
At the informal European Council meeting held on 8 November 2024 in Budapest, EU leaders adopted the Budapest Declaration on the New European Competitiveness Deal. The declaration – initiated by the Hungarian Presidency as one of its main priorities – emphasizes the importance of improving the EU’s competitiveness.
The Budapest Declaration affirms that competitiveness is not solely an economic policy concern—every policy area has dimensions that impact competitiveness. The European Council has set clear expectations for the European Commission: all legislative proposals in the next institutional cycle must undergo a competitiveness test and impact study. This is a significant achievement for Hungary’s presidency, underscoring our commitment for a more dynamic and competitive Europe.
Leaders agreed that the EU has to urgently close the innovation and productivity gap, both with our global competitors and within the EU. To boost competitiveness, all instruments and policies must be harnessed in a comprehensive and coherent manner at both EU and Member State level. Business as usual is no longer an option.
Achieving these goals will enable Europe to strengthen its resilience, global competitiveness, and commitment to sustainable development. The Budapest Declaration is the first step, it’s time for Europe to move out of the pit lane! As the Hungarian motto of the EU presidency states: Let’s make Europe great again!
When we discuss the future of Europe and our partnerships for the upcoming 50, 75 years, our shared responsibility and interest lie in encouraging rational and mutually beneficial relations between Hungary, China and the European Union. Strong ties between Hungary and China demonstrate that a reciprocally advantageous economic and political partnership can be achieved, serving as a model for strengthening Europe's strategic autonomy and competitiveness in its engagement with China.
The author is Chief of Cabinet of the Deputy Minister, Ministry of European Union Affairs, Hungary