Chinese President Xi Jinping has congratulated András Baka on taking office as Hungary’s new president, stressing the long-standing friendship between the two countries. The message comes, however, at a sensitive moment for Hungary-China relations: after years of exceptionally close political and economic cooperation under Viktor Orbán, the new Hungarian government is still defining how much of that relationship it intends to preserve.
In his message on Wednesday, Xi noted that Hungary was among the first countries to recognise the People’s Republic of China and highlighted 77 years of diplomatic relations between Budapest and Beijing.
According to Xinhua, the Chinese president said the two countries had maintained relations based on “mutual respect, equality, mutual benefit and win-win cooperation”. Xi added that he was ready to work with Baka to deepen political trust and practical cooperation and advance the countries’ “all-weather comprehensive strategic partnership for the new era”.
The wording is significant because that elevated partnership was agreed during Xi’s state visit to Budapest in May 2024, when relations between China and Viktor Orbán’s government were arguably closer than at any previous point. The unusually high-level diplomatic designation placed Hungary among Beijing’s closest political partners in Europe.
Hungary-China relations became a cornerstone of Orbán’s economic strategy
Under Orbán, Hungary deliberately positioned itself as one of China’s most welcoming investment destinations inside the European Union. While several EU governments became increasingly cautious about economic dependence on Beijing, Budapest pursued what Orbán described as economic connectivity and neutrality.
By late 2024, Chinese companies had pledged around EUR 9 billion in investments in Hungary, according to Reuters.
The largest projects transformed Hungary into an important European centre for the electric vehicle and battery industries. Chinese battery giant CATL announced a EUR 7.3 billion factory in Debrecen, while BYD chose Szeged for its first European passenger-car manufacturing plant, an investment expected to reach around EUR 4 billion.
Orbán’s government also backed strategic Chinese projects with public money and infrastructure. BYD’s European headquarters and research and development centre in Budapest, announced in 2025, was promised HUF 20 billion in Hungarian government assistance – approximately EUR 55 million at the Hungarian central bank’s current exchange rate.
This close economic relationship was accompanied by similarly warm political ties. Hungary repeatedly opposed a harder EU approach towards Chinese trade and objected to tariffs on Chinese electric vehicles, presenting cooperation with Beijing as an alternative to economic bloc-building.
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The new Hungarian government has not yet broken with Beijing
The change of government in Budapest therefore created an obvious question: what happens to this strategy without Orbán?
Prime Minister Péter Magyar’s government has so far given no indication that it intends to drive Chinese investors out of Hungary. Early statements have instead pointed towards a more cautious model: maintaining commercially beneficial relations with China while bringing Hungarian policy closer to common EU rules and positions. Euronews reported after the April election that Magyar was not planning a fundamental reversal of trade relations with Beijing.
Nevertheless, one recent development has complicated the relationship.
Péter Szijjártó’s move to BYD puts the old model under scrutiny
Former foreign minister Péter Szijjártó, one of the principal architects of Orbán’s China policy, resigned his parliamentary mandate in July and accepted an international executive position at BYD, responsible for external relations and developing new business areas. Details: Former FM Szijjártó quits parliament to join Chinese EV giant BYD
The move immediately raised conflict-of-interest questions because Szijjártó had personally played a major role in attracting BYD to Hungary while serving as foreign minister. He participated in negotiations over the company’s Hungarian investments and announced government support for its projects.
The new government subsequently launched a review of the BYD agreements. Prime Minister Péter Magyar said authorities would examine subsidies, tax advantages, permits, infrastructure commitments and other decisions connected to the investment. Associated Press reported that neither BYD nor Szijjártó had responded to allegations of a conflict of interest, while Szijjártó presented his new role as a prestigious professional opportunity.
The investigation does not in itself amount to a rejection of Chinese investment. It does, however, indicate that the political conditions surrounding such investment may be changing.
Xi’s congratulations to Baka can therefore be read as more than routine diplomatic protocol. Beijing is signalling continuity and emphasising the exceptional partnership built during the Orbán years. Budapest, meanwhile, has yet to demonstrate exactly what continuity will mean under a government seeking closer cooperation with the European Union.
For Hungary-China relations, the economic foundations remain substantial. The political rules governing them may now be entering a new phase.
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