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Hungary. Viktor Orban's government is looking for help. They turn to China

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The portal writes about two new railway projectswhich are part of China's Belt and Road Initiative (BRI), in which Hungary participate as the only EU country. This is about a quick connection between the Budapest airport and the city center, as well as the so-called the V0 railway line, the aim of which is to bypass Budapest by freight trains.

VSquare points out that the V0 railway was supposed to be financed by the Russians, but invasion on Ukraine ruined these plans; the project was shelved due to tight budget and economic problems. “After the actual resignation from unblocking EU funds the Hungarian state is financially exhausted; A Chinese loan is the only real option,” VSquare wrote on Monday, citing a source linked to the Hungarian government.

Another BRI project, the Budapest-Belgrade railway connection, is also facing financial problems on the part of the Hungarian government.

Hungary. Orban's government is seeking financing from China

“Orban's government routinely makes threats European Commission increasing dependence on Chinese financingif cohesion funds are not released,” the ambassador of one of the EU countries in Hungary told VSquare.

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The portal adds that it is unlikely that Hungary will meet the criteria needed to unlock the remaining part of cohesion funds. In December, the European Commission unfreezed EUR 10.2 billion of the EUR 22 billion planned for Hungary for 2021-2027, positively assessing changes in the judicial system in this country. The remaining funds, along with the amount worth over EUR 10 billion National Reconstruction Planhowever, remain blocked.

New railway projects may also result problems with EU regulatory authorities – emphasizes VSquare. “They result from the possible use of Chinese technology, which is not compliant with EU standards,” the portal adds.

“Hungary is important for China because it is a well-located EU member state and has a stable political and economic environment,” says Levente Horvath, director of the Eurasia Center and China expert, quoted by Index. “Hungary and China share similar views on the evolution of the world orderand economic cooperation between both countries has also contributed to deepening relations,” the analyst added.

Huge support from China. The largest investor in Hungary

Szabad Europa, the Hungarian service of Radio Free Europe, reported a few days ago that an announcement may be made during the May visit with Xi. another large Chinese investment in Hungary. This is about Great Wall Motors (GWM), the eighth largest Chinese electric car manufacturer, which would open its first European factory in Bicserd, near Pécs in southeastern Hungary.

Also Tesla's biggest rival, the Chinese company BYD, recently announced that it will build its first European passenger car factory in Szeged in southern Hungary. In turn, in mid-2022, the Chinese CATL announced that it would invest over 7.3 billion euros in the construction of a 100 GWh battery factory in Debrecen in eastern Hungary.

We oppose all actions European Unionwhich would hamper economic cooperation between Europe and China, which also applies to the Chinese electric car sector, said the Hungarian Minister of Foreign Affairs and Trade, who was visiting China last week Peter Szijjarto.

In Beijing, Szijjarto also announced that FiberHome, a major supplier of network and telecommunications equipment in China, will open its the largest European factory, where it will produce optical cables. The investment value is expected to amount to 8 billion forints (approx. PLN 88 million).

The politician emphasized that China was the most important investor in Hungary last year.

Xi Jinping's visit to Hungary. The first in over a decade

Leader of the People's Republic of China Xi Jinping will pay a visit to France, Serbia and Hungary on May 5-10 – said Lin Jian, spokesman for the Chinese Ministry of Foreign Affairs, on Monday. He will stay in Hungary on May 8-10 at the invitation of President Tamas Sulyok and Prime Minister Orban. According to media reports, Xi is expected to arrive with a delegation of 400 people.

– The purpose of the visit is further strengthening interstate, economic and trade relations between Hungary and China, as well as the expansion of cooperation into new areas, said Bertalan Havasi, the press spokesman for the Hungarian Prime Minister, on Monday.

The last time Xi was in Hungary was in 2009, before he took over his leadership role Communist Party of China. The Leader of State Środa arrives in Hungary on the 75th anniversary of the establishment of diplomatic relations between the two countries.

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Petru in “Graffiti”: Prime Minister Morawiecki generated a VAT gap of PLN 40 billion/Polsat News/Polsat News

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