China

The 24th China International Fair for Investment & Trade opens in Xiamen

China International Fair for Investment & Trade

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The 24th China International Fair for Investment & Trade (CIFIT) commenced at the Xiamen International Convention and Exhibition Center on September 8.

Investment Connecting the World, Creating Global Opportunities. On the morning of September 8, the 24th China International Fair for Investment & Trade (hereinafter referred to as CIFIT) opened grandly at the Xiamen International Convention and Exhibition Center. CIFIT has brought together participants from 119 countries and regions, showcasing its role as a vital platform for two-way investment promotion and win-win collaboration.

With the annual theme of “Investment Connecting the World”, this CIFIT spans 120,000 square meters and aims to foster 3 platforms for two-way investment promotion, authoritative information dissemination, and investment trend discussions. Regarding the exhibition area layout, the event features a central exhibition area and three specialized pavilions dedicated to investment promotion, industrial innovative development, and project-capital matchmaking. This year’s CIFIT addresses critical topics such as “bringing in” foreign investment, “going out” to expand globally, and fostering pragmatic international cooperation, all aimed at creating a two-way investment platform for the global community.

One of the key highlights of CIFIT 2024 is its focus on internationalization which serves major national development strategies. This year’s CIFIT actively supports global development initiatives and the high-quality joint construction of the Belt and Road Initiative. The event has attracted over 1,000 government agencies and business groups from 119 countries and regions, with approximately 80% of participants from Belt and Road Initiative countries.

Hungary and Zhejiang Province of China are honored as the guest country and province, respectively. Hungary’s 450-square-meter national pavilion showcases its technological and cultural achievements, reflecting the growing economic and trade cooperation between Hungary and China. Notably, Fujian companies like CATL and Xiamen Intretech have made significant investments in Hungary, making Fujian a key source of Chinese investment in the country.

Notably, CIFIT 2024 also places a strong emphasis on industrial innovation, dedicating a 47,000-square-meter pavilion to showcase advancements in BRICS cooperation, supply chain innovation, new quality productive forces, green and low-carbon technologies, and more. Five professional exhibition zones, covering areas such as the BRICS new industrial revolution, digital economy, national supply chain innovation, new energy and green innovation, international police, security, and legality technology, highlight regional investment cooperation achievements, industrial innovation and development, new technologies and products, and development trends in strategic emerging industries and future industries.

In addition, this year’s CIFIT will focus on investment themes and host over 100 activities, including global special economic zone alliance exchanges, BRICS digital economy matchmaking and exchanges, “Leading China”, Specialized, Refined, Differential, and Innovative (SRDI) roadshows, investment in economic development zones, etc. During this event, authoritative reports such as the World Investment Report (Chinese Version) 2024 and China Two-Way Investment Report 2024 will be released, highlighting investment opportunities in China’s modernization and large markets and enhancing efforts to attract and utilize foreign investment. Moreover, the event will present numerous research findings on trending topics and offer professional public service products to enhance international investment cooperation.

As a “barometer” and “wind vane” of China’s two-way investment landscape, CIFIT, launched in 1997, has been successfully held for 23 sessions. So far, it has successfully facilitated the signing of over 30,000 projects. The event continues to play a crucial role in attracting major foreign-funded enterprises to China through many landmark foreign-invested projects in China, many of which have established a strong presence within the country. Simultaneously, it supports the global expansion of Chinese enterprises.

Disclaimer: the author(s) of the sponsored article(s) are solely responsible for any opinions expressed or offers made. These opinions do not necessarily reflect the official position of Daily News Hungary, and the editorial staff cannot be held responsible for their veracity.

Unveiled: How Hungary plans to spend the Chinese loan funds

green energy electric vehicle chinese loan

Hungary is set to use part of its EUR 1 billion Chinese loan to fund the installation of electric vehicle charging stations in rural areas. This move comes as the government redirects funds due to delays and uncertainties with EU recovery grants.

According to Portfolio, the Chinese loan will be allocated to this project initially planned for EU funding. The government’s decision also involves using the loan for other related initiatives, reflecting a strategic shift in funding approaches.

green energy electric vehicle chinese loan
Photo: Facebook/Energiaügyi Minisztérium

Initially, this project was planned to be funded by the EU’s recovery loan framework through an upcoming HUF 28 billion (EUR 70.9 million) grant. However, with EU funds either delayed or uncertain, the government has decided to utilize the Chinese loan for this initiative. It appears that not only will part of the HUF 28 billion grant be covered by the Chinese loan, but also a separate HUF 30 billion (EUR 76 million) EU grant for electric vehicle purchases.

Since Daily News Hungary first reported in late July about Hungary’s quiet acquisition of a EUR 1 billion loan from Chinese banks, there has been speculation about how this significant funding would be used. The Debt Management Agency’s (Államadósság Kezelő Központ) database lists only broad categories for the loan’s purpose: “Financing the central budget’s expenditures in high technology, infrastructure development, transport infrastructure, and energy sectors.”

First reports about the possible usage of the loan

National Economy Minister Márton Nagy stated the following day that this loan “will be integrated into state financing, primarily for infrastructure development.” Meanwhile, Finance Minister Mihály Varga confirmed last week that “the Chinese loan is being used for energy efficiency investments,” although the Chinese partners have not agreed to declassify the loan agreement.

Portfolio now reports that at least HUF 28 billion from the nearly HUF 400 billion Chinese loan will be allocated to expanding electric vehicle charging stations in rural areas, a project initially planned to be funded by the EU’s recovery program.

The “Installation of Electric Vehicle Charging Stations” tender, coded RRF-REP-10.14.1-24, was socially consulted in early July and was expected to open in August, but it has not yet begun. Businesses with electric charging station operator licenses will be able to apply, committing to establishing at least one charging station in one of the 45 designated underserved districts.

green energy electric vehicle chinese loan
Photo: Facebook/Energiaügyi Minisztérium

Government substitutes EU recovery funds with Chinese loans

It is highly likely that the government intends to use the Chinese loan for both the HUF 28 billion EU grant and the ongoing HUF 30 billion electric vehicle purchase grant. This is supported by two factors.

First, when the government added the electric vehicle charging tender to the REPowerEU loan project list last August, it also added the electric vehicle purchase grant. A government decree allowed for these projects to be financed by the budget if EU funds were not received or were delayed, paving the way for using Hungarian and potentially Chinese funding.

Second, on 2 July, the Ministry of Energy highlighted the EU tender for expanding the charging network while reminding that the HUF 30 billion vehicle purchase program had already started in February, also under the REPowerEU framework.

If this report proves accurate, it will be the first tangible sign that the Hungarian government is substituting EU recovery funds with Chinese loans due to difficulties accessing EU funds.

Minister Márton Nagy previously indicated that “we are entitled to this money, but the EU is blocking us for political reasons.” He added, “We continue to fight for the funds, but it seems we are encountering very tough obstacles.”

EU recovery funds still out of reach

The government has yet to meet several key milestones for accessing EU recovery funds, and recent updates suggest a lack of progress or intention to meet these requirements, making access to these funds uncertain. However, the EUR 0.92 billion advance from the REPowerEU chapter may need to be repaid if milestones are not met by 2026. Consequently, it is notable that the government has sought a EUR 1 billion Chinese loan with objectives closely mirroring those of the EU’s recovery program.

The government’s choice to use Chinese funding for the tenders, despite challenges with EU funds, can be explained by several factors:

  • According to the Ministry of Interior, the number of green license plate vehicles in Hungary has surpassed 100,000, with over 60,000 being purely electric. The HUF 30 billion vehicle purchase program and other initiatives suggest that developing charging infrastructure, along with significant upgrades to the electrical network, is crucial.
  • The transportation sector’s greenhouse gas emissions are the second highest in Hungary after the energy sector, accounting for about 20%. Following a rise in emissions over recent years, last year saw the first significant decrease, over 7%. Expanding the charging network and electric vehicle fleet could further drive this reduction in the coming years.

Read also:

PHOTOS: Hungary takes part in China investment and trade fair

China International Fair for Investment and Trade (CIFIT) in Xiamen, China

Hungary is participating as a guest of honour at the China International Fair for Investment and Trade (CIFIT) in Xiamen, China, Levente Magyar, a state secretary of the foreign ministry, said in his opening remark at the event.

China International Fair for Investment and Trade

“This is a great opportunity and a great honour for us,” as many companies can present themselves with products, services and innovative solutions, he said. Mr Magyar noted that Xiamen is located in Fujian province, the source of most Chinese FDI, therefore they have held talks with the governor and the city administration on how to further expand relations.

China International Fair for Investment and Trade (CIFIT) in Xiamen, China
China International Fair for Investment and Trade (CIFIT) in Xiamen, China. Photo: MTI/KKM (Külgazdasági és Külügyminisztérium)

The state secretary noted that next year Xiamen will become the eight city in China that will have a direct flight to it from Budapest. They also discussed cultural ties, he added. The CIFIT events is being organised for the 24th time.

Hungary is being represented at the event by the Hungarian Export Promotion Agency (HEPA), the Hungarian Tourism Agency, national investment promotion agency HIPA, Agrarmarketing Centrum (AMC), the Hungarian Wine Marketing Agency, the National Industrial Park Management and Development Company (NIPUF) and the Hungarian Innovation Agency.

Read also:

Hungary is guest of honour at Pujiang Innovation Forum

Pujiang Innovation Forum china

The Pujiang Innovation Forum in Shanghai opened on Saturday with Hungary participating as a guest of honour at the four-day event.

“Our goal is to strengthen our research, scientific and innovation relations with our Chinese partners, because if we look around the world, we can see that China is ahead not only of Europe, but also of the United States in innovation and science,” deputy state secretary for innovation László Bódis said at the event.

In the fields of science, research and innovation Hungary also wants to be at the forefront of the world, so it is essential to establish close cooperation with Chinese companies and universities, Mr Bódis said.

Hungary is represented at the event with around forty experts, company and university leaders, who will showcase at the forum in which areas Hungarian innovation provides world-class performance. The Pujiang Innovation Forum is being held for the 17th time since its inaugural event in 2008.

Read also:

Featured image: depositphotos.com

China considers building an aviation hub at Budapest Airport

New direct flight to Budapest from China Chinese tourists

During his diplomatic visit to Beijing, Hungary’s Minister of Economic Development, Márton Nagy, held a crucial meeting with Jin Zhuanglong, China’s Minister of Industry and Information Technology.

Increased Hungary-China cooperation

PM Orbán Xi Jinping in Beijing chinese president chinese press szijjártó china
Viktor Orbán and Chinese President Xi Jinping. Photo: FB/Orbán

According to Hungary’s Ministry of Economic Development, the groundwork for this collaboration was laid during the EU-China Tourism Dialogue, which Hungary hosted from 3-5 July in Budapest, Index reports. The discussions were largely driven by the sharp increase in the number of Chinese tourists visiting Hungary.

In addition to expanding travel opportunities, China made a landmark decision allowing Hungarian citizens to travel visa-free to China for up to 15 days starting 7 March 2024. This move is expected to ease personal and business exchanges between the two nations significantly.

China’s aviation hub at Budapest Airport

New direct flight to Budapest from China Chinese tourists
New direct flight to Budapest from China. Photo: FB/Budapest Airport

The rising number of foreign tourists, especially from China, highlights Hungary’s growing appeal. The new cooperation aims to boost Chinese tourism to the country further. The core objective of the agreement is to establish a Chinese airline hub at Budapest’s Liszt Ferenc International Airport, which would facilitate further travel from Budapest to Western destinations for Chinese passengers.

As we reported before, another key topic of discussion was battery recycling, an essential component of the green transition. The two ministers agreed to expand their existing cooperation to include battery recycling and to set up a working group this year to share expertise between the two nations.

The working group will include associations, universities, and companies from Hungary’s relevant sectors, along with the Ministry of Economic Development. From the Chinese side, the Ministry of Industry and Information Technology will participate, along with companies on its ‘White List’. This collaboration aims to introduce Hungary to cutting-edge, safe recycling technologies, Index concluded.

Read also:

Hungarian minister travelled to Beijing for more Chinese loans? – UPDATE: pact signed

national economy minister márton nagy for chinese loan

Márton Nagy is Beijing to convince the Chinese to support additional Hungarian developments. In July, the Hungarian government took out a EUR 1 billion loan but did not share what they would like to spend that sum.

According to hvg.hu, Mr Nagy met with the governors of the Bank of China and the China Construction Bank to win their support for Hungarian energetics and infrastructure developments, his ministry said. The ministry added Hungary has become the number one target of Chinese investors, highlighting that the country would like to become an economic bridge between the East and the West.

Nagy promoted energetics, digitalisation, and e-mobility projects, and the ministry said the Belgrade-Budapest railway upgrade would be ready by next summer.

Ministerial meeting for battery recycling

National Economy Minister Márton Nagy met with Chinese Minister of Industry and Information Technology Jin Zhuanglong in Beijing, his ministry said in a statement on Friday.

The ministry said the main topic of their discussion was battery recycling, which is an essential element of the green transition and for improving Hungary’s competitiveness.

The ministers agreed that an existing cooperation agreement will be expanded to include battery recycling and that a working group will be set up this year to share knowledge between the two countries.

The working group on the Hungarian side will include associations of and domestic companies operating in the sector, universities and the National Economy Ministry. On the Chinese side it will be comprised of the Ministry of Industry and Information Technology and companies included on a white list it compiles.

During the meeting Mr Nagy emphasized that Hungary strives for cooperation based on mutual respect and wishes to further strengthen its role as an economic bridge, in which Eastern and Western capital and top technology are connected in Hungary.

This was the third meeting between the ministers in a year, the statement said.

UPDATE: Minister signs cooperation pact with China culture and tourism minister

Nagy has signed a cooperation accord with Sun Yeli, China’s culture and tourism minister, his ministry said in a statement on Friday. According to the statement, the agreement was based on a dynamic increase in the number of Chinese tourists, with 105,000 visiting Hungary in the first seven months of 2024, compared with 110,000 for the full previous year.

Apart from 21 direct flight services between Budapest and seven Chinese cities, China’s unilateral decision to lift the visa requirement for Hungarians arriving in China on short trips has contributed to a strengthening of tourism ties, the statement said.

China’s visa decision “largely contributes to the development of personal and business ties” between the two countries, the ministry said.

A “spectacular” increase in the number of foreign visitors “clearly reflects Hungary’s growing attraction”, the ministry said, adding that the new agreement aimed to encourage even more Chinese tourists to visit. “To that end the goal is that a Chinese airline should set up an airdrome within Budapest Liszt Ferenc International Airport, from which Chinese passengers could be carried on to the west,” the ministry said.

The statement noted the importance of tourism in terms of the national economy. Tourism accounts for over 10 percent of Hungary’s GDP, while the sector employs some 400,000 people, the statement added.

Read also:

  • Hungarian minister meets battery recycling company executives in China – read more HERE
  • Chinese money will save the collapsing Hungarian railway system? – details in THIS article

CRRC ZELC to build Chinese-Hungarian train factory in Hungary

crrc china locomotive

Chinese company CRRC Zhuzhou Locomotive Co (CRRC ZELC) is partnering with Hungarian group Acemil to establish a rolling stock manufacturing plant in Hungary, targeting the European market.

CRRC ZELC, one of six subsidiaries of the Chinese state-owned CRRC group with over 10,000 employees, plans to have the facility operational by next year. The partnership also aims to set up a railway education, training, and R&D centre, according to Railway Gazette.

Acemil, a Hungarian logistics, railway manufacturing, energy, and IT group founded in 2022, has been chosen as a reliable local partner. The group, entirely owned by a private equity fund, initially focused on China-Europe railway logistics.

PM Orbán Xi Jinping in Beijing chinese president chinese press szijjártó china
Viktor Orbán and Chinese President Xi Jinping. Photo: FB/Orbán

This project follows Chinese President Xi Jinping’s diplomatic visit to Budapest in May, highlighting the Hungarian government’s efforts under PM Viktor Orbán to strengthen ties with China. Chinese companies have recently invested in several production facilities in Hungary, including battery and car factories.

CRRC has previously delivered small batches of rolling stock to EU operators, with larger-scale orders fulfilled through its subsidiary, Vossloh Rolling Stock. CRRC ZELC’s acquisition of Vossloh Locomotives GmbH in 2020 marked a significant step into the European market.

Chinese development plans in Europe

chinese train factory
Photo: depositphotos.com

CRRC ZELC plans to manufacture mainline and shunting locomotives, electric multiple units, and double-deck trainsets at the new Hungarian facility. Acemil Board Member Dávid Kovács highlighted Hungary’s rich railway manufacturing history, noting that “Ganz and later Ganz-MÁVAG supplied railway vehicles for the international market over many decades.”

“Our goal is to put Hungary back on the map of European rolling stock production,” said Kovács. “We aim to produce products with at least 51% EU added value to meet market demand.”

Kovács also emphasised plans to establish a maintenance base in Hungary to support current and future European product portfolios. “We don’t just want to sell railway vehicles; we want to offer comprehensive service packages with mobile maintenance staff to reduce customer concerns about maintenance,” he explained.

“We are looking ahead, to 2025 and beyond”, Kovács explains. “We can be sure that there will be a huge demand for new locomotives for a variety of reasons. Currently, there are about 55,000 locomotives in Europe. The average age of those in Western Europe is 20 to 23 years, in Eastern Europe 35, in Hungary, it is 40 to 50 years. And a green transition is happening in Europe, amid expectations from the EU institutions of further progress with network electrification and overall decarbonisation. The existing suppliers just won’t be able to keep up with this demand,” he added.

Additionally, Acemil has also concluded an agreement with another CRRC subsidiary, CRRC Shandong Co, for joint manufacturing and assembly of freight wagons in Hungary, for which a separate factory would be built. „We have an existing collaboration with CRRC Shandong”, Kovács explains, adding that „we are ready to start the manufacturing of wagons in the first quarter of 2025.”

Read also:

  • Hungarian rolling stock production to be revived with Chinese help – Read here
  • Chinese money will save the collapsing Hungarian railway system? – Read here

Hungarian minister meets battery recycling company executives in China

national economy minister márton nagy for chinese loan

National Economy Minister Márton Nagy met with executives of battery recycling companies Gotion High Tech, CNGR Advanced Material, Ganzhou Teng Yuan Cobalt, Hithium Energy Storage, and Huanchuang (Xiamen) Technology, global leaders in the industry, during his official visit to Beijing.

The sides reviewed the global situation of the industry, challenges facing the sector, opportunities held by the green transition and possible investments in Hungary by Chinese battery recycling companies.

Minister meets battery recycling company executives

national economy minister márton nagy china
Hungarian national economy minister Márton Nagy. Photo: MTI/Balogh Zoltán

The minister also held separate talks with executives of GEM and the Jereh Group and visited a processing plant of Zhejiang Huayou Cobalt and met the company’s executives in Quzhou.

Under EU regulations, the ratio of battery recycling has to reach 45pc by end-2023, 63pc by end-2027 and 73pc by end-2030. Mr Nagy reiterated that electromobility is key to the future of European industry.

In order to accelerate the transition, Hungary, which currently holds the European Union presidency, has developed a new EU-level action plan with proposals for the development of the charging infrastructure, the introduction of purchase subsidies and the mandatory recycling of used batteries.

Read also:

Chinese money will save the collapsing Hungarian railway system?

Budapest Hungary railway

National Economy Minister Márton Nagy met with executives of the Bank of China (BoC) and the China Construction Bank (CCB) during his official visit to Beijing. Among others, they touched some railway development projects concerning even the future Budapest Airport-city centre line, in which Hungary would need Chinese co-financing.

The talks aimed to continue the dialogue for the financing of energy and infrastructure developments in Hungary, the National Economy Ministry (NGM) said on Wednesday. The Bank of China opened its Budapest office in 1997 and the China Construction Bank has been operating an office here since 2022. The sides discussed bilateral economic cooperation, and the minister called for deepening relations further, especially in finance.
China’s global financial role continues to grow, and Hungary has become the number one target for Chinese investments in Central and Eastern Europe, which contributes to the country becoming a regional financial hub. The partnership of the Bank of China and the China Construction Bank can help more Hungarian banks enter the Chinese market and help bring more Chinese investments to Hungary, the ministry said. The Chinese partner banks focus on infrastructure projects approved by the government, including energy, digitalisation and e-mobility, presented by the ministry early this year in Beijing.
After the projected completion of the Budapest-Belgrade railway line next summer, the V0 freight rail ring road bypassing Budapest, the railway connection between the city centre and Liszt Ferenc Airport and the development of the border crossing between Hungay and Serbia could be the next strategic investments implemented in Hungary with Chinese co-financing, the ministry said.
Read also:

Washington Post: Orbán increasingly represents everything the EU opposes

Orbán european parliament

According to the Washington Post, Viktor Orbán’s policies are weakening the European Union from within. In a critical report on the first few months of Hungary’s presidency of the EU, the paper addresses issues ranging from “troll diplomacy” to Orbán’s visit to Moscow.

“As soon as Prime Minister Viktor Orbán assumed Hungary’s presidency of the European Union in July, one thing was clear: he increasingly stands for everything the EU opposes,” writes The Washington Post in a recent article on the Hungarian EU presidency. The paper examined Orbán’s first two months of the rotating presidency, raising concerns over whether the Hungarian Prime Minister is aligned with or against the European Union’s goals.

EU presidency turning to “troll diplomacy”

“The problem is that Orbán increasingly stands for everything the EU opposes,” The Washington Post writes, citing as an example last year’s national consultation on issues such as migration, LGBTQ+ rights, and support for Ukraine,  At the time, AP News wrote of the national consultation that it struck “a combative tone toward the EU,” accusing it of “trying to force policies on Hungary.”

Péter Krekó of the Center for European Policy Analysis told the WP that the first two months of the Hungarian EU presidency have descended into “troll diplomacy,” with Orbán wanting to “provoke more anger from the leaders of the European Union.” The paper recalls the Prime Minister’s controversial visit to Moscow as part of his “peace mission,” which also included meetings with Chinese President Xi Jinping in Beijing and with Donald Trump at Mar-a-Lago.

All of this, The Washington Post highlights, occurred despite the fact that China is increasingly regarded as the European Union’s “systemic rival,” and that the EU has “embraced US President Joe Biden after four especially acrimonious years with Donald Trump.”

Putin Orbán Russians washington post
Putin and Orbán meet in Moscow in July. Photo: Viktor Orbán / Facebook

Washington Post: EU leaders displeased with Orbán

In a scathing description of the status quo, the Washington Post writes that

“In the halls of the EU institutions from the parliament to the executive European Commission, every day officials are on the lookout for what Orbán might do next to discredit the bloc until the end of the year.”

One indication of the growing dissatisfaction felt by EU politicians towards the actions of the Hungarian Prime Minister is that the meeting of foreign ministers on Thursday was organised in Brussels rather than Budapest. Furthermore, as the Washington Post points out, some states have already refused to attend other meetings in Hungary, sending lower-ranking bureaucrats instead of ministers.

However, as the decision-making process of the European Union often requires unanimity, “taking tough action is extremely difficult,” giving Hungary significant bargaining power when it comes to contentious issues.

Hungary: middleman between the EU and other states

Despite the often harsh criticism levelled against the European Union by the Orbán government, Hungary has no plans to leave the bloc, the Washington Post adds, quoting Orbán’s statement at a summer camp:  “In Brussels, we are not passive, but we have set up shop there: we are not moving out, but moving in.”

Hungary’s position as an EU member also makes it important to nations like Russia and China. According to the Washington Post, for these states, Hungary provides  “a foot in the door of the massive bloc they would not have if Orbán chose to leave the community he loathes.” Péter Krekó adds “I would absolutely agree that what Orbán does is usually serving the interests of Russia and China, but it serves his own interests as well — Orbán wants to weaken the European Union from within.”

Read also:

  • EU foreign ministers to discuss ‘dangerous proposals’, says Orbán cabinet – HERE
  • ‘War psychosis’ still rampant in Brussels, says FM Szijjártó – Read HERE

FM Szijjártó calls US Ambassador Pressman a ‘leading figure’ of Hungarian opposition

szijjártó brussels

David Pressman, the US ambassador to Budapest, is “a leading figure of the Hungarian opposition”, and his statements must be handled as such, the foreign minister said on Thursday.

At a press conference after an informal European Union foreign ministers’ meeting in Brussels, Péter Szijjártó said in response to a question concerning Pressman’s criticism of Hungary’s “peace mission” that the US ambassador was “an opposition activist and one of the leading figures of the Hungarian opposition”.

“His statements must be assessed accordingly,” Szijjártó said, according to a ministry statement. “And if I want to talk about the contents of his opposition activist statements, then I could say that interestingly, when the Italian prime minister went to China, and said that China was an essential partner for dialogue in the current fragile international situation, then the opposition activist did not activate himself.”

“Or when President Zelensky called Donald Trump, he did not express any condemnation, or when the Ukrainian foreign minister recently visited China, we could not hear any criticism from him,” he added.

“So it is obvious that his statements came from and were inspired by his opposition position,” he said.

Commenting on criticism voiced by his Lithuanian counterpart, Szijjártó said Gabrielius Landsbergis was “one of the most pro-war politicians” in Europe.

“He is competing for the title of most pro-war politician; he regularly criticises Hungary’s pro-peace position. I believe his assessment of the situation cannot be considered realistic in any aspect,” he added.

Read also:

Hungary’s debt to China skyrockets, raising financial concerns

PM Orbán Xi Jinping in Beijing chinese president chinese ambassador szijjártó china hungarian

This spring, the Hungarian government secretly borrowed a EUR 1 billion loan from China, with the lump sum being withdrawn on 19 April, a fact only revealed at the end of July. This loan adds up to a debt of around EUR 1 billion, and when combined with other loans, Hungary’s total debt to China could be significantly higher.

Hungary in significant debt to China

444 has compiled a list of the outstanding debts, primarily using data from the Public Debt Management Centre (ÁKK). Their findings show that in just three years, the Hungarian government has accumulated considerable debt to China. By the end of the second quarter of this year, Hungary owed HUF 71.79 billion (EUR 182 million) to the Asian Infrastructure Investment Bank, a debt first incurred in the last quarter of 2022.

Earlier, in the second quarter of 2022, Hungary secured a loan for the construction of the Budapest-Belgrade railway line. So far, they have drawn down HUF 341.6 billion (EUR 866 million) for this project. The total investment for the railway amounts to HUF 750 billion (EUR 1.9 billion), of which 85% is being financed by loans and 15% by co-financing. Additionally, in the spring of this year, Hungary requested a loan of EUR 1 billion in complete secrecy by the end of the second quarter, according to the ÁKK’s accounts.

On top of these loans, Hungary also has CNY 3 billion worth of foreign currency bonds due for repayment to Chinese investors this year and next, which equates to around EUR 380 million at the current exchange rates. In total, 444 estimates Hungary’s debt to China now exceeds HUF 1,000 billion (EUR 2.536 billion), although they caution it could be even higher.

Hungary deepens strategic ties with China amid EU concerns

Chinese carmaking plant Xi Jinping china
Xi Jinping. Photo: depositphotos.com

While the European Union views China’s foreign economic policy as increasingly challenging, the Hungarian government seems unfazed by the growing vulnerability to China. In fact, Prime Minister Orbán’s administration has been steadily facilitating China’s presence in Hungary, beginning with the high-profile joint Hungarian-Chinese Budapest-Belgrade railway project.

In pursuit of diversification, Hungary then opened up to Chinese investors by issuing yuan-denominated government bonds, followed by the idea of establishing Fudan University in Hungary. Chinese investments, particularly in the battery industry, were also encouraged, culminating in the deployment of Chinese police officers in Budapest and the acceptance of a large Chinese loan. The government has kept the details of this loan under tight wraps.

18 joint investment agreements signed in May

During Chinese President Xi Jinping’s visit to Hungary in May, the two nations’ leaders signed 18 joint investment agreements as part of a strategic partnership.

Among these agreements, they planned to expand Hungarian-Chinese cooperation across the entire nuclear industry spectrum, begin preparations for constructing a railway ring around Budapest (previously known as the V0 ring), and initiate work on a high-speed railway project connecting Budapest city centre with Ferihegy airport.

Additionally, they are working on jointly developing an electric car charging network, starting construction on Europe’s “most modern, largest, safest, and fastest transit” border crossing between Hungary and Serbia, and exploring the possibility of an oil pipeline between Hungary and Serbia, involving Serbian participation.

Read also:

  • New China-Hungary projects in the pipeline as economic cooperation grows – Read here
  • Hungary’s largest steel producer gets Chinese support for green upgrade – Read here
  • Hungarian government plans new foreign bond issuance following gigantic Chinese loan – Read here

New flight to Eastern metropolis remains, Ryanair’s Budapest flight delayed by 28 hours

Budapest flight to Eastern metropolis Beijing

Air China will continue to operate 4 flights weekly between the Chinese capital and Budapest with their Boeing 787-9 Dreamliner aircraft. In the meantime, Ryanair passengers had to wait more than 28 hours for their return flight to Budapest in Milan.

According to airportal.hu, the Chinese airline plans 4 direct flights between Budapest and Beijing even in their winter timetable. The new schedule will start on 27 October. The Boeing 787-9 Dreamliners will carry passengers on Monday, Thursday, Friday, and Sunday. Planes will depart from Beijing at 2.55 AM local time, land in Budapest at 6.25 AM (Budapest time), then return to the Chinese capital under the CA 720 flight number at 11.25 AM (Budapest time) to arrive at 3:35 AM local time.

Air China will fly between Budapest and Chongqing once a week with Dreamliners. The Chinese airline increased the number of flights between Budapest and Beijing from two to three this April. In most of the summer schedule, a 4th plane commuted.

Fewer flights to South Korea

According to Budflyer, in the winter period, Polish LOT plans only two Budapest-Seoul flights weekly. Furthermore, they do not plan to operate 4 flights weekly in the 2025 summer session.

Passengers waited 28 hours for their Budapest return flight

According to 444.hu, passengers returning to Budapest landed on Sunday instead of Saturday with their Ryanair flight. The delay was almost 28 hours.

One of the passengers told RTL Klub that they received a EUR 4 voucher in Milan, but could not buy anything. At dawn, the airline took them to a two-star hostel, which they had to leave at noon to return to the airport and continue waiting more than 12 hours.

The Budapest government office is conducting 15 probes concerning delays and cancellations of airlines like Wizz Air, Ryanair, and Eurowings. Passengers of three airlines already got compensation. We noted today that Hungarocontrol rewrote air traffic controllers’ schedule to have more employees working in the 5 AM–7 AM time slot. As a result, morning delays could be reduced. Such delays resulted in serious problems all over Europe in June. However, the core of the problem has not been solved: there are still not enough traffic controllers due to low salaries.

Read also:

  • Travel time on Wizz Air flights increases – read more HERE
  • Hilton hotel debuts its first countryside location in Hungary – PHOTOS and more in THIS article

Featured image: depositphotos.com

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

Private super railway line Budapest Airport

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

Hungary Budapest-Belgrade railway
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

New direct flight to Budapest from China Chinese tourists
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

Hungary’s largest steel producer gets Chinese support for green upgrade

Dunaferr steelworks Hungary

China’s CISDI Engineering has signed a memorandum of understanding with China Export and Credit Insurance Corporation (Sinosure) on underwriting 1.3 billion euros in financing for two 150-tonne capacity electric arc furnaces it is supplying to Indian-owned Liberty Dunaujvaros, Liberty Steel Group said on Monday.

CISDI representatives announced the MoU during a visit to Liberty Dunaújváros’s steelworks in central Hungary. The CISDI officials also consulted with experts from Switzerland’s NPT and Germany’s RCG on optimising systems at the base and building ancillary support for electricity, gas, water, and steam.

The 1.3 billion euros of investments, which include upgrades of the hot-rolled mill and galvanising line and the installation of new production lines, will turn the steelworks into a supplier for the local defence and automotive industries.

Liberty Steel Europe CEO Thomas Gangl said the project was advancing “on schedule”.

CISDI chairman Xiao Peng said the MoU with Sinosure was a “significant step” in reducing the CO2 emissions of the 3 million-tonne capacity mill.

Liberty Steel acquired the assets of troubled steelmaker Dunaferr in a liquidation procedure in the summer of 2023 for about 20 billion forints (EUR 50.2m).

As we wrote earlier, Hungarian steel maker Liberty Dunaújváros has started shutting down its two coke ovens, details HERE.

  • read also: Hungarian company to build aircraft factory in China – VIDEO

Wizz Air launches new direct flight from Budapest to Mediterranean paradise

Runway Wizz Air

Hungarian low-cost airline Wizz Air is to launch a new direct flight from Budapest to a Mediterranean gem in Italy. Meanwhile, the first direct flight from a Chinese metropolis has arrived in Budapest.

Wizz Air connects Budapest with Mediterranean gem

According to airportal.hu, a Hungarian outlet specialising in air travel news, the first Wizz Air flight to Salerno in southern Italy will take off on 28th October from Budapest Airport. The planes will transport passengers between October and December three times a week, operating on Monday, Wednesday, and Friday. They will land at the Salerno Costa d’Amalfi Airport, close to Naples.

From January until the end of March, there will be two flights each week on Thursday and Sunday. Additionally, there will be two weekly flights to Naples on Thursday and Sunday in November and December. From January until the end of the winter schedule, three flights will depart from Budapest to Naples on Monday, Wednesday, and Friday.

Wizz Air engine
Photo: FB/Wizz Air

Numerous new destinations and frequency increases announced

Wizz Air announced last week that they would open four new destinations from Budapest: Girona (Spain), Genoa (Italy), Marrakech (Morocco), and Memmingen in Germany. We covered that in THIS article.

Thanks to the expansion of Wizz Air at Budapest Airport, the airline has become the leading carrier based here with 17 jets. The airline’s capacity will grow by 30% in the winter schedule compared to the same period last year.

Wizz Air passengers
Photo: depositphotos.com

Wizz Air’s market share in Hungary will grow to 41%, strengthening its leadership. According to the company, they will transport 7 million passengers to and from Budapest. We wrote in THIS article that Wizz Air might outperform Ryanair, its biggest regional competitor, this winter in Budapest.

Another piece of good news is that Budapest Airport plans to expand its border control capacities at Pier B soon. According to Budflyer, new control desks will be installed at the departure level.

First direct flight from Shenzhen arrives in Budapest

The first scheduled direct flight from Shenzhen arrived in Budapest on Friday. Hainan Airlines will operate the route between Budapest and Shenzhen twice a week, as reported by MTI.

Addressing a press conference after the Boeing 787 aircraft landed at Budapest’s Liszt Ferenc International Airport, Péter Sztáray, state secretary at the foreign ministry, said every event like the launch of the Shenzhen-Budapest flight vindicated Hungary’s eastern opening policy.

Shenzen Budapest Hainan Airlines
Photo: FB/BudapestAirport

Ferenc Antal, deputy state secretary at the national economy ministry and member of the board of directors of Liszt Ferenc International operator Budapest Airport, hailed the developing relations between Hungary and China, stating that China was Hungary’s most important partner outside Europe. He said the new flight was “another milestone in the quality development of bilateral relations” which gave new impetus to the deepening of economic and cultural ties.

Gong Tao, China’s ambassador to Hungary, said the new flight brought the number of weekly flights between the two countries to 21, noting that this was the third new route launch in two months.

Hainan Airlines Budapest Airport
Photo: FB/BudapestAirport

“August 2nd is a lucky date for Hainan Airlines. On this day back in 2004, they landed in Hungary for the first time, and today, 20 years later, we celebrate the inaugural flight between Budapest and Shenzhen,” the airport’s official Facebook page wrote.

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Hungarian governent happy that Orbán’s Italian ally met Xi Jinping in Beijing

Italian PM met Xi Jinping in Beijing

Hungary welcomes Italian Prime Minister Giorgia Meloni’s recent visit to Beijing and her talks with Chinese President Xi Jinping, the foreign minister said on Wednesday.

Meloni’s statement suggesting that China is an indispensable partner in the dialogue amid “growing insecurity at an international level” is particularly welcome, Péter Szijjártó said on Facebook.

“We do hope that neither the European Union nor any of its members will attack Italy’s prime minister over her visit to Beijing,” Szijjártó said, adding that the way to find a solution in the current international situation was through diplomacy and dialogue.

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Gyurcsány’s DK files request about EUR 1 billion loan Orbán’s cabinet took out from China

Viktor Orbán China

The Democratic Coalition will file a request to the State Debt Management Centre for information concerning the terms of a one-billion-euro loan the government has recently taken out from China, László Varjú, the opposition party’s deputy leader, told an online press conference on Wednesday.

The government “seeks to conceal” what they want to use the huge amount of money for, and suggested that Hungary’s taxpayers would be repaying the loan for decades.

“We don’t know what interest we’ll have to pay on the Chinese loan,” he said, adding that the term of the loan was also unclear. “We do not know either which Fidesz-billionaire’s company the money will benefit,” Varjú added.

Through providing the loan, China will make Hungary “dependent, not only in an economic but in a political sense”, Varjú said. Prime Minister Viktor Orbán “has put on the Chinese leash in return for further billions they could loot,” he said.

Taking a loan from China is “a shining proof” that “the government’s austerity measures have yielded even less in state revenues … and because of the empty coffers it will take out further and further loans and introduce more and more austerity,” Varjú said.

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  • Hungarian government plans new foreign bond issuance following gigantic Chinese loan – Read more HERE