China's Foothold in Europe
In the ever-evolving landscape of international relations, Hungary's ties with China have been a subject of interest and debate. Here's a snapshot of the Hungarian government's stance and its ongoing cooperation with China, despite pressure from both Washington and Brussels.
The Hungarian government has announced its intention to reduce its cooperation with China if faced with undue pressure from the United States and the European Union. However, it is expected that Hungary will continue its collaboration in key areas such as 5G technology and electric vehicle manufacturing, despite disapproval from the U.S. and EU.
One area where Hungary has shown particular interest is in Huawei's AI-based facial recognition system, which has been in use in Belgrade since 2019. This interest is further underscored by the strategic agreement signed between Hungarian firm 4iG and Huawei in October 2023, aimed at developing cloud and artificial intelligence services.
Huawei's presence in Hungary is significant, with the establishment of its Europe Supply Center in Pecs in 2009 and an R&D center in Budapest in 2020. The company now operates a separate data center for Chinese and Asian companies in the region.
However, the cooperation is not without controversy. Chinese battery factories in Hungary have sparked controversy, but protests have subsided due to rising property values and assurances of compliance with EU standards.
The EU-China Comprehensive Agreement on Investment, signed in December 2020, is yet to be ratified by the European Parliament. The ratification process is crucial, as it would further strengthen the economic ties between the EU and China.
It's important to note that Hungary's stance towards China is not set in stone. The country could shift from connectivity to cautious distancing, depending on the pressure from the White House and the evolution of U.S.-China and EU-China relations. This could involve limiting Chinese acquisitions and reducing the use of Chinese high-tech in strategic sectors.
The decision by Lithuania to upgrade its Taipei Office to the Taiwanese Representative Office in 2021 provoked Beijing, which temporarily removed Lithuania from its customs website entry. This incident serves as a reminder of the political sensitivity surrounding China-EU relations.
Looking ahead, if the current governing parties win the 2026 elections, Hungary is likely to maintain its position as an outlier within the West, resisting broader de-risking and decoupling trends.
One project that exemplifies this is the planned European Fudan University campus in Budapest, financed by a $1.5 billion Chinese loan. Despite initial plans, the project was shelved due to opposition and deteriorating Sino-European relations.
In conclusion, Hungary's relationship with China is complex, marked by cooperation in certain areas while navigating political and public sentiment in others. The future of this relationship will depend on various factors, including political shifts, economic pressures, and the evolution of global geopolitics.
Read also:
- Predictive modeling introduced in DP World's automotive supply chain operations
- Machine Learning and Forecasting Advancements in Supply Chain Resilience: Insights from Jaymalya Deb
- India's construction sector receives a significant boost with Suraksha Group leveraging one of Asia's biggest captive precast factories for mechanization.
- Manufacturing operations at Lear shift to Palantir software software integration
