borsodchem
Photo: MTI

Economic relations between Hungary and China are continuing to progress steadily despite the coronavirus pandemic, Péter Szijjártó, the foreign affairs and trade minister, said after announcing an investment by Hungarian chemicals company BorsodChem, owned by China’s Wanhua group, on Thursday.

BorsodChem is investing 12 billion forints (EUR 33.2m) at is base in Kazincbarcika, in north-eastern Hungary, saving some 3,000 jobs in the area, Szijjártó said. The company is expanding its annual manufacturing capacity of 200 kilotonnes by 90 kilotonnes, he added.

Szijjártó praised BorsodChem as “one of the Hungarian economy’s most important businesses”, saying it had become a leader in both the domestic and European chemical sector. The company has retained all of its employees during the pandemic and has even been able to increase headcount, he added.

Commenting on Hungarian-Chinese economic ties, Szijjártó said

the volume of Hungarian exports to China have increased by 12 percent this year, while bilateral trade turnover has risen by 18 percent compared with the same period last year.

Chinese companies have announced ten investments worth a combined 140 billion forints in Hungary so far this year, he said.

The minister said the Hungarian government’s policy of opening up to the East was “a clear success”. He added that last year 45 percent of worldwide investments were financed by capital from Eastern countries. Over the last ten years, Hungary’s exports to that part of the world have increased by 22 percent, while and last year, for the first time, the majority of foreign investments into Hungary came from a Far Eastern country, Szijjártó said.

Chinese companies have invested over five billion dollars in the Hungary so far and employ more than 15,000 Hungarians, he said.

In the spring, China delivered 185 planes worth of protective gear to Hungary, the minister said, noting that Hungary took delivery of another one million favipiravir tablets from China on Wednesday.

The minister also said the pandemic was set to bring about a new global economic order “in which Hungary wants to be among the winners”.

crrc china locomotive
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Source: MTI

3 comments
  1. I am not a Sinophobic person at all. However i must say i find it amusing that a Govt which even has a post dedicated to supposed protection of supposedly persecuted Christians ( govt post which i find ridiculous and alone speaks for how laughable Orbán’s illiberal regime is ) makes a lot of business with a country which is highly regarded as one of the world’s top persecutors of Christians.
    I can guess the answer to that is: pecunia non olet. And also, that similia cum similibus congregantur. But, still, it says a lot about Hungary’s de facto dictatorial regime’s schizofrenic attitudes and international unreliability.
    No wonder why the image on the countrt abroad is so bad.

  2. Apprehensiveness is my position in this growing “love affair” we appear to be in the phase of with China.
    Remember the largest overseas purchases of property in Hungary over the past (12) twelve months – Chinese.
    Tread cautiously in the establishment of new foreign ownership with China.
    They sign off on contractual foreign deals and investments – and have a history, that the balance of cards, heavily are stacked in there Favour.
    The “other side” rock the boat, and rugs are quickly pulled from under you, and blame propelled at you.
    The culture of the Chinese – the Government of China is they NEVER apologize.
    Globally at present China is playing hard ball – exhibiting sizable increase of power weight and influence, not taking backward steps which could be viewed as a process of retaliation against countries, that they have or have had trading partnership arrangements.
    Could it be on a large global scale – ALL deals are Off – lets re-write the Chinese way for the Future new deals that we make the offers and you agree or disagree – the Chinese way.
    It could be the precedent – the new world way, post the novel pandemic that we could see be the future of foreign investment and trading – the Chinese way.
    Australia, the largest exporter of Iron Oar to China, who can’t survive without it for their steel industry production, and other than Australia, the Chinese presently are paralyzed to have Iron Oar – that Australia has in abundance to have the level that meets their demands obtained from another country.
    Australia has been sent “To Coventry” – the ramifications of China’s spitting the dummy, our way or no way, is a humungous challenge on the Government of Australia.
    Australia will not have the intestinal fortitude to stop Iron Oar being sent to China, even though, their wine industry, crayfish- lobster , barley and foreign student quota numbers and other export commodities to China, the on-going foreign trading relationship Australia does have with China indicates serious ominous vibes.
    Australia opinion should be rapidly accelerating its trading relationships with India.
    Australia by far not the only country to be “scolded” by China in recent times.
    My preference to get messages across to China, is for the joining of countries – all with common interests – and jointly do a presentation to China, that clearly puts them in a position that they get the message its a two way ticket, and jointly we can present you economic and domestic challenges, that could “bruise” you just like you are doing to us by your way the Chinese way or no way.
    Brittle relationships globally seen with China with number of big player countries, who need China like China needs them.
    Trepidation – be very very careful and ensure the out on foreign trading and affairs – investment arrangements with China, that you in your out clause don’t get massively hung nor bitten.

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