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GT: This year marks the 75th anniversary of the establishment of diplomatic relations between China and Hungary. Despite the changing international situation, the relationship between China and Hungary has continued to develop steadily, and in 2017, the two countries officially established a comprehensive strategic partnership. What do you think is the key to the success of the ChinaHungary relationship?
Gong: Hungary was one of the first countries to recognize and establish diplomatic relations with the People’s Republic of China, and the relationship between the two countries has weathered storms and stood the test of time. In recent years, under the strategic guidance of the leaders of the two countries, China-Hungary relations have maintained robust growth. Our two countries have had close high-level exchanges, deepened political mutual trust, made fruitful and solid progress in cooperation in various fields, and brought tangible benefits to the two peoples.
China and Hungary have developed a comprehensive strategic partnership. They always respect each other’s independently chosen development paths and domestic and foreign policies, firmly support enhanced connectivity, and advocate for a world of multipolarity and inclusive economic globalization. The two countries firmly oppose “decoupling” and bloc confrontation. They are good friends and partners, stand for mutual trust and win-win cooperation. They are on the path to national development and rejuvenation, and support maintaining world peace and stability. Looking ahead, the cooperation opportunities and prospects in various fields such as economy, trade, finance, innovation and culture between China and Hungary are limitless and broad.
On the 75th anniversary of the establishment of diplomatic relations between the two countries, President Xi’s state visit to Hungary comes at the invitation of President Tamás Sulyok and Prime Minister Viktor Orbán. This visit sends a strong signal to further promote bilateral relations. This milestone visit will elevate bilateral relations to a new height, open a new chapter in China-Hungary friendship
Chinese President Xi Jinping arrived in Hungary late Wednesday, the final destination of his European tour. Chinese Ambassador to Hungary Gong
Tao (Gong) shared his views on the significance of the visit in an interview with Global Times (GT) reporter Wang Wenwen, reviewing the development of bilateral relations and the prospect of cooperation between the two countries in the future. and cooperation, inject impetus into China-EU relations, and provide elements of stability and positive energy to a turbulent world.
GT: Hungary is the first European country to sign a Belt and Road cooperation document with China, and we have seen fruitful results in China-Hungary cooperation under the Belt and Road Initiative (BRI). Could you introduce what new characteristics and directions China-Hungary cooperation under the BRI will have in the future?
Gong: China and Hungary are steadfast partners in promoting cooperation under the BRI. Hungary is the first European country to sign a Belt and Road cooperation document with China. Prime Minister Orbán has attended the BRF in China three times in a row, and President Xi has met with him multiple times. Under the strategic guidance of the leaders of both countries, the BRI and Hungary’s Opening to the East policy are closely aligned, unleashing strong vitality and creating a number of high-quality cooperation projects. The 10 years of BRI cooperation between the two countries can be described as a golden period of rapid development in economic and trade cooperation between the two countries. In the future, the two sides will continue to promote high-quality joint construction of the BRI in key areas such as digital economy, green development, and information technology.
The two sides will further strengthen policy communication and coordination, rely on mechanisms such as the inter-governmental Belt and Road cooperation committee, the ChinaHungary Economic Joint Committee, and e-commerce working groups to enhance strategic alignment. The two sides will actively explore new areas of cooperation and strengthen cooperation in new energy vehicles. They will also jointly create a model of win-win cooperation in the automotive industry chain between China and Europe, support the innovation of more highquality financial products by financial institutions in both countries to provide strong support for cooperation, encourage the opening of more direct flights for passengers and cargo, and construct a land and air “Silk Road.” The two sides will continue to deepen peopleto-people exchanges, expand cooperation in education, culture, science and technology, tourism, and local areas, encourage exchanges between young people in both countries, promote mutual understanding between the people of the two countries, and enhance mutual understanding.
GT: The new energy industry chain, including electric vehicles and power batteries, has been the focus of recent investment by Chinese enterprises in Hungary. Why has Hungary become a bridgehead for the investment of Chinese enterprises in Europe?
Gong: Due to the friendly relations between China and Hungary and the favorable investment environment in Hungary in recent years, more and more Chinese enterprises have made Hungary their first choice for investment in the EU. The automotive industry is one of the pillar industries of Hungary’s economy, and more than 14 of the world’s top 20 automakers have established complete vehicle manufacturing plants and auto parts production bases in Hungary. In 2016, the Hungarian government also specifically formulated the development plan for electric vehicles, which provides a good foundation for the development of the electric vehicle industry in Hungary. At the same time, China has the advantages of advanced technology, broad market and high maturity in the global new energy industry. Both sides have complementary advantages and great potential for cooperation.
GT: In Europe, some people are dissatisfied with China’s electric vehicles, photovoltaic and other products, claiming that “China’s overcapacity is a risk for Europe.” What’s your take on the view? Gong: Hyping up and accusing China of “overcapacity” is unreasonable. China’s production capacity in new energy industry is the necessary advanced capacity to promote green development, rather than overcapacity. China’s green technologies and products, especially the development of new energy industry, respond to the needs of countries to alleviate the energy crisis and cope with climate change, and will make an important contribution to the global green and low-carbon transformation. The “China’s overcapacity” rhetoric is only a pretext for protectionism.
Recently, Hungarian Foreign Minister Péter Szijjártó said in a media interview that “China’s overcapacity” doesn’t exist, it’s just “political, ideological statement,” and “there is a big demand for new electric cars, lack of capacity does exist.” China highly appreciates this remark, and is willing to continue to deepen cooperation with Hungary in the new energy vehicles industry to achieve mutual benefit and win-win situation.
GT: What do you think is the significance of President Xi’s visit to Hungary? How will the trip elevate ChinaHungary relations?
Horváth: In the Year of the Dragon, we celebrate the 75th anniversary of the establishment of diplomatic relations between Hungary and China. For the past 75 years, there has been a close relationship between the two countries. With the Hungarian “Opening to the East” policy in 2010, and the announcement of the China-initiated Belt and Road Initiative (BRI) in 2013 – which Hungary joined in 2015 – we can talk about ever closer economic relations: China has now become Hungary’s largest trading partner outside of Europe, and 4 percent of the entire Hungarian trade comes from Chinese cooperation. Therefore, it is clear that Hungary-China relations are living their golden age, thus President Xi’s visit to Hungary will be a worthy celebration of the 75th anniversary of diplomatic relations, and it is expected that the current comprehensive strategic partnership will rise to another level.
Kiszelly: Hungary is a medium-size EU member state, so the country feels honored to welcome President Xi on one of his three stops in Europe. This is not only to remember the fact that Hungary was one of the first countries to recognize the People’s Republic of China in 1949, but that since then vice president Xi’s visit to Hungary in 2009, China-Hungary relations have developed in a more than satisfactory way. The expectations in Budapest are high, and not only in the field of economy. The most urgent question of our time is to maintain connectivity between the West and China, not to “de-risk” or “decouple,” and to provide mankind a shared future in prosperity, security and growth.
Hungary was among the first to join the BRI with many ongoing development projects, like the BelgradeBudapest railway. Electric vehicle (EV) manufacturing is a new dimension with BYD electric bus production already having a presence in the country, and EVs are coming to a new plant in the town of Szeged. The visit of President Xi can give momentum for more projects of common interest, like the extension of direct flights between China and Hungary, the fulfilment center for Chinese online shops for their European consumers and the development of environmentally friendly train transport via the Middle Corridor.
GT: What do you think is the key to this successful bilateral relationship?
Horváth: We are witnessing the changing of the world order. The unipolar world order, dominated by the West until now, is transforming into a new kind of multipolar world order. As the West is afraid to lose its power, it started creating blocs, a new cold war thinking, on an ideological basis. However, we have learned from history that bloc-formation is not a good direction, but rather connectivity and peaceful cooperation based on mutual respect and mutual benefits can support the peaceful coexistence and development of countries.
The relationship between Hungary and China is getting closer and closer because they think similarly about international relations. And also because Hungary has a stable political and economic environment that is very important for long-term planning and cooperation.
GT: Why can Hungary remain steadfast in its approach toward China?
Horváth: Taking into account its national interests, Hungary maintains good relations with China and other Asian countries in addition to the West. It has diversified its relations in the spirit of the policy of “Opening to the East,” thanks to which the Hungarian economy has benefited a lot.
However, it is also important to mention that, although the EU is critical of Hungary-China relations, EU member states are increasingly establishing economic relations with China, the second largest power in the world economy. German Chancellor Olaf Scholz visited China in April leading a business delegation; French President Emmanuel Macron also received the Chinese head of state in Paris on this occasion as well. In addition, the heads of government of Belgium and the Netherlands paid an official visit to China, and the prime minister of Italy is also planning a trip to China this year.
Kiszelly: Hungary is doing the same that Germany, France and other big Western economies did for decades, establishing mutual beneficial economic relations with one of the decisive poles of world economy – China.
As Western European countries change their attitude toward China, Hungary sticks to this success model, and maintains connectivity, and opposes “de-risking” or even “decoupling.”
Hungary has faced much criticism and even political attacks and economic and political sanctions from allies for its China policy, but the Hungarian government is convinced that a model, having functioned for decades and being mutually beneficial, can be obtained in the future. Hungary is not isolated in this effort, as many Western manufacturing companies are interested in maintaining cooperation with Chinese companies.
The bureaucratic policy of the European Commission drives Europe into economic decline and recession. “De-risking” and “decoupling” are part of this disastrous and ideology-driven policy and as such it is opposed by the Hungarian government.
China-Hungary relations are a good example of a relationship of mutual respect and noninterference into the domestic affairs of the other partner. That is a solid base for a prospering relationship, sidelining ideological aspects and artificial barriers put into effect by third parties. Hungary is pursuing in the EU this policy of noninterference and mutual respect policy.
GT: What positive impact do you expect Xi’s visit to bring to China-EU relations?
Kiszelly: In a more and more challenging world, it is best to talk to each other directly and to discuss the upcoming difficulties in person. The Europe visit of President Xi is a good opportunity to do this. France is a founding and big Western European member of the EU, while Hungary is a “new” and Eastern member state, and Serbia is a candidate country of the EU and the biggest country on the Western Balkans. The Chinese president and the leaders of these European countries will have the opportunity to discuss current issues in person.
The most positive impact can be seen in the dialogue and the chance to clear positions and settle misunderstandings on questions of bilateral interest. The leaders can focus on enhancing the mutual beneficial trade between our two poles of the world economy, adjusting the imbalances and encouraging investment.