Budapest (Brussels Morning) – Chinese Premier Li Keqiang’s visit to Hungary strengthens their strategic partnership, positioning Hungary as a key ally in the EU. The visit underscores Hungary’s growing ties with China despite concerns from traditional allies, with significant investments and infrastructure projects discussed.
The recent visit to Hungary by Chinese Premier Li Keqiang has been hailed as a strategic success for the Orban government, according to a top foreign affairs expert. Zsuzsanna Vegh, programme assistant at the German Marshall Fund and visiting fellow at the European Council on Foreign Relations, provided an assessment of the visit’s outcomes in an interview to this website.
How Does China View Hungary as an Ally in the EU?
Vegh stated, “President Xi Jinping’s visit to Hungary and the consequent upgrade of the current strategic partnership between the two countries is a clear signal that China sees Hungary as a key and reliable ally in the EU.” This visit, which coincided with Europe Day on May 9, symbolically underscored Hungary‘s commitment to strengthening its bilateral ties with China, despite concerns from its traditional allies.
Why is Hungary Strengthening Ties with China?
Vegh highlighted that Hungary’s grand reception of Xi signified its indifference to allies’ concerns over China’s security and economic impact. The Orban government aims to position Hungary favorably in what it perceives as a developing multipolar world. Several investments were discussed during the visit, including investment in battery producer CATL, the new EV factory of BYD, and a proposed new railway line around Budapest. These projects facilitate Chinese access to the EU market by locating production within the EU, thus avoiding import tariffs, especially on electric vehicles.
What Are the New Infrastructure Projects Announced?
Other infrastructure projects announced include a fast railway from Budapest airport to the city, a new oil pipeline between Hungary and Croatia, and an EV charger network. These projects suggest that Hungary does not anticipate financing such strategic developments from EU funds, many of which remain suspended due to rule of law and democratic-backsliding issues. Instead, Hungary is prepared to use more financially disadvantageous funding from China.
How Will These Projects Be Financed?
Unlike EU structural funds, which Hungary would not need to repay, the Chinese projects would be financed via Chinese loans and implemented by Chinese companies. The details of these deals, including an agreement on nuclear cooperation aimed at making nuclear energy a more central component of Hungary’s energy mix, are not yet known.
What is the Political Impact of the Visit?
Politically, the visit benefits the Orban government by portraying its foreign policy as a success amidst deteriorating relations with its traditional allies. The strengthening of ties with China comes at a time when Hungary is facing criticism and sanctions from the EU.
What Are the Concerns About China’s Human Rights Record?
A former MEP highlighted the need to focus on China’s human rights record. The Briton, a senior former member, stated, “There is a strong reaction against Beijing in most EU countries because of their appalling human rights record and infiltration of our academic, commercial, and security networks. The takeover of democratic Hong Kong and their relentless rearming, including very sophisticated nuclear weaponry, makes China the second most autocratic and potent threat to the world’s democracies.”
