Hungary has witnessed a manufacturing surge, thanks in part to Chinese investments that have bolstered the country's economy and manufacturing capabilities, a Hungarian expert said.
Bilateral trade between China and Hungary experienced significant growth in 2023, surpassing 13 billion U.S. dollars. Moreover, China's direct investment in Hungary reached 7.6 billion euros (about 8.15 billion U.S. dollars), accounting for 58 percent of the total foreign direct investment into the country. Hungary has remained China's largest investment destination in Central and Eastern Europe for years on end.
In a recent interview with China Global Television Network (CGTN), Gladden Pappin, president of the Hungarian Institute of International Affairs, noted that despite a decline in manufacturing in some countries, Hungary has experienced an increase in manufacturing activity, partially due to the investments coming from China.
"What we've been seeing is that even while in some countries there has been a manufacturing decline, that's been continued to increase in Hungary. And that is due in part due to the activity of investments coming from China that have helped to boost the economy and the manufacturing capabilities here. So that's the main thing. Europe has to be a very open economy. China is the number one source of imports into Europe. It's Europe's No.2 export market. Particularly because of Hungary's location, its history, its sensitivity on these areas and its good experience of what having an open and connected economy is like. That's why Hungary is taking this stance to advocate for as much connection as possible and for figuring out ways through diplomacy and exchange to resolve differences," said Pappin.
Pappin acknowledged that no diplomatic relationship is perfect, and that misperceptions and disagreements are natural.
"Of course, it's natural that there are misperceptions and disagreements and things that have to be worked through. No diplomatic relationship in this world is perfect, there's always something to discuss and work through. But the goal has to be to use that process to increase the connections and not to decrease them," said Pappin.
China helps boost Hungary’s manufacturing capabilities: Hungarian expert
