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Thursday, January 16, 2025

Hungary. China's next big investment – they will build a factory of components for electric cars

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A new factory of components for electric cars will be built in Hungary, announced the Minister of Foreign Affairs and Trade Peter Szijjarto. This is another major investment by China in this country. The increasingly closer relations between the two countries are being criticized not only by the Hungarian opposition, but also by Budapest's Western partners – especially in NATO and the European Union, where Hungary is increasingly referred to as “China's European bridgehead”.

The production line for components for electric cars is to be built in the city of Hatvan, approximately 40 km east of Budapest.

Szijjarto announced that the investment will also include research and development of new technologies. According to his ministry, Xinzhi will produce on Hungary one of the components of electric motors. The investment value is approximately 50 billion forints (approx. PLN 515 million). About 900 jobs are to be created.

More and more cooperation

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Hungary strengthening relations i China it has been going on since 2010, when the current prime minister came to power in Hungary Viktor Orbán. Analysts point out that his pro-Chinese sympathies have not changed even after Russian aggression Ukrainewhich contributed to strengthening strategic cooperation between Beijing and Moscow. Orban presented his attitude towards China in July last year, when, during his annual meeting with Hungarian youth in Baile Tusnad, Romania, he described China as “a country liberating hundreds of millions of people from poverty using a successful socio-economic model.”

At the same time, experts point to Budapest's constantly growing dependence on Beijing, e.g. by concluding new contracts and economic agreements. In the first half of 2024 alone, Hungary signed nearly 20 contracts with China, which included, among others: expanding cooperation in nuclear energy and strategic infrastructure projects such as the construction of highways and railways. Hungary's debt to the Middle Kingdom is also constantly growing. According to Hungarian media, in the second half of last year, Budapest's debt to Beijing exceeded EUR 2.53 billion.

“China's European foothold”

The increasingly closer relations between the two countries are being criticized not only by the Hungarian opposition, but also by Budapest's Western partners – especially in NATO and the European Union, where Hungary is increasingly referred to as “China's European bridgehead”.

Main photo source: Shutterstock



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