Chinese President Xi Jinping Visits Hungary: Ukraine War and Infrastructure Projects Top Agenda

As Chinese President Xi Jinping embarks on his first European tour in five years, he is set to meet with Hungarian Prime Minister Viktor Orban on Thursday, with the war in Ukraine and infrastructure projects expected to be high on the agenda. This visit comes as Hungary solidifies its position as an important partner for trade and investment with China, contrasting with other European Union nations that are considering diversifying from the world's second-largest economy.

Xi, who arrived in Budapest late on Wednesday, can anticipate a warm welcome in a country that has actively cultivated close ties with China. In an article published in the pro-government daily Magyar Nemzet, Xi wrote, "I have developed deep friendships with Hungarian politicians, and Hungary was the number one target in the central eastern European region for Chinese investment."

Why It Matters:

Xi's visit to Hungary highlights the country's strategic importance in China's Belt and Road Initiative, an ambitious plan launched by Xi a decade ago to build global infrastructure and energy networks connecting Asia with Africa and Europe. Hungary's support for this initiative has paved the way for significant Chinese investments, particularly in the fields of battery production and electric vehicle manufacturing.

As the European Union grapples with concerns over its dependence on China's economic clout, Hungary's embrace of Chinese investment raises questions about the potential implications for the bloc's cohesion and collective stance towards Beijing. The visit also underscores the delicate balance between economic interests and geopolitical considerations, as the war in Ukraine is expected to be a topic of discussion.

After visiting France and Serbia, Xi's stop in Budapest comes at a time when the European Union is seeking to strike a balance between engaging with China on trade and investment while addressing concerns over human rights, intellectual property rights, and unfair trade practices. The discussions in Hungary could shed light on China's willingness to address these issues and potentially reshape its approach to the region.

The meeting between Xi and Orban is expected to yield the signing of 16 to 18 new cooperation agreements, one of which could be a large-scale infrastructure project within China's Belt and Road Initiative, according to Hungarian Foreign Minister Peter Szijjarto. The war in Ukraine will also be high on the agenda, as the European Union seeks to leverage China's influence on Russia to end the conflict.

Hungary's warm relations with China extend beyond trade and investment. In February, China offered cooperation on public security and law enforcement issues to Hungary, further deepening the bilateral ties between the two countries.

Orban's government has been actively working to bring Hungary closer to Beijing since coming to power in 2010. These efforts have now materialized into substantial investments, with battery and electric vehicle makers like CATL and BYD establishing major production facilities in Hungary, valued at billions of euros.

As China's footprint in Hungary continues to grow, concerns have been raised about the potential risks associated with an overreliance on Chinese investment and technology. However, analysts suggest that by establishing production within the European Union, Chinese companies could potentially mitigate the impact of the bloc's protectionist measures aimed at safeguarding strategic industries.

Xi's European tour and his visit to Hungary highlight the intricate web of economic interests, geopolitical considerations, and shifting alliances that are shaping the global landscape. As the Chinese president engages with European leaders, the outcomes of these meetings could have far-reaching implications for the region's economic and political dynamics.

Key Takeaways

• Xi Jinping's visit to Hungary underscores the country's significance in China's Belt and Road Initiative.
• Hungary's embrace of Chinese investment raises questions about the EU's collective stance on Beijing. 
• The meeting between Xi and Orban is expected to focus on trade, investment, and the war in Ukraine.
• Hungary's warm relations with China have led to substantial investments, particularly in infrastructure.
• Concerns persist over Hungary's reliance on Chinese investment and technology, despite economic benefits.