The final stop on President Xi's trip to Europe is Hungary. China has invested close to 10 billion dollars in manufacturing and infrastructure in the country and Prime Minister Viktor Orban is keen to maintain good ties with a major economic partner.

Budapest

Chinese President Xi Jinping recently concluded his Europe tour with a visit to Hungary, marking the final destination of his journey. This visit underscores the deepening ties between Hungary and China, characterized by substantial Chinese investments in the Hungarian economy. Totalling close to $10 billion, these investments are primarily targeted at manufacturing and infrastructure projects within Hungary. Prime Minister Viktor Orban, leading the Hungarian government, expresses a strong commitment to maintain and enhance the bilateral relationship with China, a significant economic partner.

In the eastern city of Debrecen, an ambitious project is underway that epitomizes the scale and impact of these investments. A Chinese-backed factory, with an investment of $8 billion, is set to manufacture lithium-ion batteries for electric vehicles. This initiative is not just the largest direct investment project in Hungary but also a pivotal development for the European electric vehicle market, providing Chinese batteries to Chinese cars within the European Union.

However, the surge in Chinese investments has stirred local concerns and political ramifications. The assembling of seven Chinese battery factories around Debrecen has sparked rumors about the potential influx of more than 40,000 foreign workers, causing unease among the local populace. This situation has provided a platform for emerging opposition leader Peter Maillard, who has been actively campaigning in areas traditionally considered strongholds of the ruling Fidesz party led by Orban. The growing skepticism towards the tangible benefits of Chinese investments for the ordinary Hungarian citizens is fueling the rise of political figures like Maillard, suggesting a potential shift in the political landscape.

Prime Minister Orban’s administration is distinguished by its welcoming stance towards Chinese investments amidst a general European Union trend of limiting Chinese economic influence. Hungary remains the sole EU member engaged in China’s Belt and Road Initiative, demonstrating Orban’s strategy to foster a favorable investment environment for China to sidestep EU import tariffs. This approach is partly driven by Hungary's isolated position within the European Union and the broader transatlantic alliance, pushing the country to seek new alliances, with China emerging as a key partner.

A significant project highlighting this partnership is the upgrade of a railway line, financed by China, that will connect Budapest, the capital of Hungary, to the Greek port of Piraeus, currently under Chinese control. This infrastructure is poised to expedite the transport of Chinese goods into Central Europe, further cementing China’s economic foothold within the European Union.



Xi Jinping ends European tour in Hungary

A construction site for now, near the city of Debrecen in eastern Hungary, that only hints at its future significance. It's the country's largest ever direct investment project, an $8 billion Chinese factory that will produce lithium-ion electric vehicle batteries, Chinese batteries for Chinese cars to be sold inside the European Union. It's also where Hungary's emerging opposition leader has been making inroads on the campaign trail, drawing crowds in the traditional heartlands of the ruling Fidesz party. The two things are not unrelated. Just here around Debrecen, seven Chinese battery factories are under construction. And there are rumours that more than 40,000 people will be brought from abroad. And people here are very worried about that. Not long ago, a gathering like this would have been unthinkable, but Chinese investments in this country, seen as delivering little for ordinary people, are galvanising support for one-time government insider Peter Maillard. It's early days yet, but there is a sense that political change is being built on the back of China's role in Hungary. Prime Minister Viktor Orban has long nurtured warm relations with China's Xi Jinping. Hungary is the only EU member participating in China's Belt and Road initiative. And while the EU generally tries to limit Chinese economic influence, Orban keeps the back door wide open, offering investment-friendly opportunities for China to avoid EU import tariffs. The government has very few friends in the European Union and in the broader transatlantic alliance. The government is looking for new friends and China is somebody who is interested in having a very good friend within the European Union. This railway line is being upgraded at Chinese expense, connecting Budapest via Belgrade to the Greek port of Piraeus, now controlled by China. Eventually it will transport Chinese goods at high speed into Central Europe. And barring political upheaval that few see as imminent, it's another project that will help cement China's only foothold inside the European Union. Jono Hull, Al Jazeera, Debrecen.

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