New China-Hungary projects in the pipeline as economic cooperation grows

On Monday, Márton Nagy, Hungary’s Minister of Economic Development, held a meeting with Ren Shengjun, the General Manager and Vice President of the Export-Import Bank of China. The discussions revolved around various joint projects between the two nations, with a focus on infrastructure and economic cooperation.

Joint projects between Hungary and China in the plans

Budapest-Belgrade railway line in the making. Photo: FB

According to the Hungarian Ministry of Economic Development (NGM), the talks centred on key areas of the Hungarian-Chinese economic relationship, including the progress of the Budapest-Belgrade railway development, which is financed by the Export-Import Bank of China, Index reports.

The conversation also explored future collaborations, particularly in transportation infrastructure. These projects could include the construction of the V0 railway line and a rail connection to Budapest’s international airport. Additionally, the parties discussed potential upgrades to the Hungarian-Serbian border crossing, as well as plans for a new oil pipeline leading to Serbia and the expansion of Hungary’s electric vehicle charging network.

The NGM highlighted that the development of railway infrastructure plays a crucial role in achieving net-zero emissions targets. As electric vehicle transport grows, ensuring compliance with net-zero requirements will depend heavily on rail transportation.

Hungary key logistics hub for Chinese goods

Budapest and China are connected by several direct flights. Photo: FB/Budapest Airport

Thanks to its strategic location, advanced infrastructure, and competitive investment environment, Hungary is positioning itself as a key logistics hub for Chinese goods. Chinese companies have already invested around HUF 6,400 billion (EUR 16.25 billion) in Hungary, creating approximately 25,000 new jobs. Citing 2023 data, the ministry said Hungary is China’s ninth most important trading partner, including the most important one outside Europe.

Márton Nagy emphasised that China remains a priority economic partner for Hungary, particularly in the financial sectors. With several major Chinese banks already operating in the country, there is potential for even greater financial collaboration. Hungary aims to solidify its role as a bridge between Eastern and Western capital and technology, ensuring regular dialogues to strengthen financial ties between the two nations.

This ongoing partnership underscores Hungary’s commitment to enhancing economic cooperation with China, creating new opportunities for both infrastructure development and financial collaboration.

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Featured image: depositphotos.com