Photo: Róbert Hegedüs
Mariann Őry
20/05/2025 23:01
What makes Hungary attractive for investors from Hong Kong?
When I first came here, what struck me most is that we are very similar in one key aspect: both Hungary and Hong Kong serve as gateways. Hungary is a gateway for non-European businesses into Europe, and Hong Kong is a gateway for businesses looking to enter China and the broader Asian market.
Why is that the case? For one, China and Hungary have maintained strong and friendly relations in trade and cooperation for many years. We are particularly grateful that Hungary was among the first countries to sign on to the Belt and Road Initiative. Since the mid-2010s, Chinese investments into Hungary have grown significantly. Just this week, the Chairman of BYD visited to announce the establishment of their European headquarters and facilities here – a major step. These developments are progressing steadily, and we expect even faster growth moving forward.
I always say that trade and investment are not one-way streets – they are multidirectional. Hungary’s geographic location is a natural advantage: firmly part of the EU, yet with a long-standing eastern strategy focused on cooperation with Asia. President Xi Jinping’s recent visit to Hungary underscored this. It’s also likely that our Chief Executive, Mr. John Lee, will visit Hungary next year.
And what makes Hong Kong appealing for Hungarian businesses?
We are part of China but operate under the "one country, two systems" principle, which means we have our own legal and economic system. Our legal system is based on common law, available in both English and Chinese. We have no foreign exchange or capital controls, and tariffs apply only to a few categories like tobacco and hard liquor. Everything else is duty-free. We also have strong free trade agreements, including CEPA – a special agreement between Hong Kong and mainland China, similar to an FTA. This combination of benefits is rare in Asia, where most countries – including mainland China – still impose restrictions.
From Hungary’s perspective, Asia is increasingly attractive due to its young, fast-growing, and high-spending population. Hungarian strengths in consumer goods, agriculture, manufacturing, and especially emerging sectors like life sciences and green technologies are well suited for this. Hungary also has an excellent scientific reputation – with many Nobel laureates – but turning this into commercial, scalable ventures requires funding and development.
That’s where Hong Kong comes in. We offer an open capital and data environment, unrestricted internet access (unlike mainland China), a highly international setting where English is widely used. In addition, Hong Kong has welcoming visa and residency policies. Entrepreneurs, professionals with job offers, or graduates from certain universities and fields like technology can easily get a work visa while keeping their Hungarian citizenship.
Chinese companies are actively encouraged by the central government to invest abroad. While capital controls exist in China, projects routed through Hong Kong are much more likely to get approval because the central government has already designated Hong Kong as a preferred exit point for outbound investment.
So, to summarize: Hungary is a key hub in Europe, and Hong Kong is a key hub in Asia. Together, we can create mutually beneficial opportunities.
What advice would you give Hungarian companies that want to succeed in Hong Kong?
Every industry is different, which is why at InvestHK we have sector-specific teams. We help companies from the planning phase all the way through to setup, licensing, finding partners, PR, launch, and expansion – all free of charge, working with legal and accounting professionals.
Success starts with clarity: know your long-term goals. Do you want to expand, or just maintain current markets despite tighter margins? Second, study the market. Hong Kong is an excellent testbed for Asia. Last year we welcomed 45 million visitors, and this year we’ve already seen 12.5 million in Q1 alone. People from around the world come here, and if your product, brand, or even restaurant works in Hong Kong, it’s a good indication that it may succeed in China or other Asian markets. This allows you to test and refine your approach before investing heavily in more closed or complex markets.
We also publish case studies – with company consent – on our website to inspire others. Moreover, the Hungarian Consulate, trade commission, and the Hong Kong–Hungarian Business Association are active supporters of Hungarian business interests.
Some companies think doing business in China is too complex – and indeed it requires a local legal representative. But in Hong Kong, that’s not necessary. Your company can be 100% Hungarian-owned, with no requirement for a local director or staff. Of course, hiring locally is helpful, but not mandatory. Hong Kong also allows you to structure ownership in a way that gives you Hong Kong legal protections while operating in China. So it’s a highly efficient and flexible platform for international expansion.
How do current global trends, such as EU policy toward China and the U.S.–China tariff war, impact this kind of cooperation with Hungary and the EU in general?
No one wants a trade war, and many were surprised by Mr. Trump’s approach, which essentially disrupted the global trade order that had been in place for decades. That said, every risk creates opportunities. These tensions have made countries realize they shouldn’t rely too heavily on any single market.
For Europe, this is even more relevant: nearly half of the EU’s GDP is tied to external trade, compared to just 26% for the U.S. That’s why we need a stable global system that allows free and fair two-way investment and trade.
China has evolved from being primarily an exporter to becoming a major global investor and buyer. It has invested heavily in Asia, and more recently in Hungary. We expect this to grow, with Hungary acting as a bridge to the broader EU. European leaders – including Ursula von der Leyen and others – have also expressed their desire to remain pragmatic and business-focused. It’s important to note that U.S. tariffs didn’t just target China, but also allies like Canada and Mexico. That kind of approach, in our view, is not sustainable long-term.
So while we don’t comment on U.S. politics, we do see this as the beginning of a new chapter – one that emphasizes balanced, practical cooperation, and stronger collaboration between China, Hong Kong, Hungary, and the EU.
The author is deputy editor-in-chief of Eurasia.