Deepening cooperation propels China-Hungary relations to new levels

“China and Hungary have enjoyed frequent exchanges and fruitful achievements in the development of bilateral relations in such fields as politics, economy, trade, finance and humanities,” Chinese Ambassador to Hungary Duan Jielong has said.

A first batch of electric buses has been produced at Chinese automaker BYD’s factory in the northern Hungarian city of Komarom, which vividly illustrates that the Belt and Road initiative and the “16+1” cooperation mechanism have pushed China-Hungary relations to a new level, Duan said in a recent interview with Xinhua.

The Belt and Road initiative, proposed in 2013, aims to build trade and infrastructure networks connecting Asia with Europe and Africa on and beyond the ancient Silk Road routes. It comprises the Silk Road Economic Belt and the 21st Century Maritime Silk Road.

Accounting for about half of China’s total investment in Central and Eastern Europe (CEE), China’s current investment in Hungary has reached $4.1 billion, creating about 10,000 local jobs, according to the ambassador.

Since diplomatic ties were established 68 years ago, “friendship and cooperation have always been the main theme of relations between the two countries,” he noted.

Relations between China and Hungary have entered the best period in history with frequent high-level visits and mutual trust in practical cooperation, said Duan, referring to the memorandum of understanding over the Belt and Road initiative signed by the two countries in June 2015.

Hungary is the first European country that has established and started the Belt and Road working group mechanism with China, which signified a successful joining of the Chinaproposed initiative with Hungary’s “opening to the East” policy, according to Duan.

In May, President Xi Jinping and Hungarian Prime Minister Viktor Orban decided to upgrade the China-Hungary relations to a full-scale strategic partnership, Duan said.

China is Hungary’s most important trading partner outside Europe while Hungary remains China’s third largest trading partner in CEE.

Last year, bilateral trade volume reached $8.89 billion with a 10.1 percent year-on-year growth. In the first half of this year, two-way trade volume reached $4.85 billion, a 17.3 percent increase over the same period of last year.

Deepening financial cooperation has also created favorable conditions for Chinese enterprises to settle in Hungary.

In 2015, the People’s Bank of China authorized the Bank of China to act as the Chinese yuan clearing bank in Hungary, which is also the first Chinese yuan clearing bank in CEE.

“Since December 2016, direct transactions have started between Chinese yuan and the Hungarian forint in China’s interbank foreign exchange market,” the ambassador said.

Within the framework of 16+1 cooperation, Hungary has actively participated in the China-CEE Investment Cooperation Fund. The series of financial cooperation initiatives has effectively promoted trade and investment cooperation between the two countries, he added.