Photo: iStock
Norbert Csizmadia
15/08/2024 07:00
There are seven priority areas where the two countries are working closely together: trade and investment, infrastructure development, technology and innovation, culture and education, health, tourism, and sustainability and environmental development. Today, 380 Chinese companies operating in Hungary employ nearly 20,000 people. Among foreign investors, China has brought in the most foreign capital in 2023, with the announcement of the BYD car plant being one of the most prominent investments. The Budapest-Belgrade railway line not only connects the two cities, but also the Greek port of Piraeus and the German port of Hamburg. It is considered the main artery of the intermodal land-sea transport route between China and Europe and is an important flagship of the BRI. The air connectivity means that after Beijing, Shanghai, Ningbo and Chongqing, direct flights have been announced to Guangzhou, Xi'an and Shenzhen, bringing the total number of flights between China and Hungary to 19 per week.
In the context of technology and innovation cooperation, areas such as artificial intelligence, renewable energy, biotechnology and the digital economy offer promising opportunities for joint research and development projects. Cooperation in the fields of culture and education, such as language learning, scientific exchanges, cultural events and student exchanges, can promote cultural diversity and intercultural dialogue. There are five Confucius Institutes in Hungary, a very high number for a country of this size.
China has the most advanced high-tech, high efficiency, high quality and green development philosophy. The emphasis on quality development and green growth is in line with sustainable development trends. As the world faces increasing environmental challenges, promoting technologies and practices that prioritise efficiency and sustainability is key to long-term prosperity.
In his paper "Why Hungary, not Singapore, is the vanguard of globalisation of Chinese technological innovation?", Luo Yihang shows that there are two countries where Chinese technology companies see opportunities today. One is Singapore and the other is Hungary.
Both countries are geostrategically important gateways, but while almost all of the Chinese technology companies and professionals attracted to Singapore are related to the "virtual economy" (for example, TikTok is an algorithm-based company), Chinese technology companies investing in Hungary focus on manufacturing and innovation.
With investments such as Ningde Times, Azera, Lenovo, Huawei and BYD, it is clear that Hungary has built factories with its own key enabling technologies, and is closely integrating advanced technology with advanced manufacturing. All of this is interconnected, especially for Europe, and Hungary is both part of and an outpost in this long global supply chain.
Chinese technology companies see Hungary as a very important hub, where supply and demand are seamlessly linked between China and Europe. What is even more important is the modernisation of the supply chain: transferring the Chinese experience of "advanced technology-driven manufacturing" to a location where it can be turned into a competitive advantage. Hungary's advantages include its geographical location, political stability, industrial tradition, engineering education and economic complexity. Even before the First World War, the Austro-Hungarian Empire was famous for its own car brands, MARTA and Magomobil (Magotax), and all of the world's 10 largest car manufacturers opened factories in Hungary. In addition to the automotive industry, high-tech industries, food, creative industries, quality of life, high-quality services and security also play a major role in Chinese companies choosing Hungary as one of their most important European hubs.
The author is a geographer and chairman of the board of trustees of the Pallas Athéné Domus Meriti Foundation and the John von Neumann University Foundation