As Western alliances face trade uncertainties and economic blocs realign, Hungary and China's Guangdong Province are deepening a strategic partnership rooted in mutual economic and technological interests.
On May 16, Budapest hosted the "Guangdong-Hong Kong-Macao Greater Bay Area-Hungary (Europe) Economic and Trade Cooperation Conference," a pivotal event solidifying collaboration in the automotive, biomedicine, green technology, and ICT sectors. Dozens of agreements were signed during the conference, with government officials and industry leaders pledging to expand joint ventures and innovation.
The Guangdong-Hong Kong-Macao Greater Bay Area-Hungary (Europe) Economic and Trade Cooperation Conference (Photo: Deng Yingheng)
Deepened cooperation in strategic emerging industries
"It will undoubtedly catalyze deeper cooperation in strategic emerging industries. In particular, the exchange is likely to emphasize sectors such as automotive, biomedical, green energy, smart technologies, and information and communication technologies," said Péter Várfi, Consul General of Hungary in Guangzhou, in an exclusive interview with GDToday.
He highlighted the symbiotic relationship: "Guangdong is at the forefront of innovation, particularly in battery manufacturing and clean energy, areas where Hungary offers strong potential for collaboration."Hungary's EU gateway status, he noted, provides Guangdong firms access to European markets, while Hungary benefits from Guangdong's tech leadership.
The conference followed a series of high-level exchanges, including a November 2024 visit to Guangdong by László K?vér, Speaker of Hungary's National Assembly. These engagements, Várfi emphasized, reflect a "mutual commitment to deepening political, economic, and cultural cooperation," anchored by Hungary's "Opening to the East Policy" and China's Belt and Road Initiative. "We can expect further strengthening of these relations, particularly in sectors such as trade, investment, and people-to-people exchanges," he added.
Hungary's appeal as an investment hub is underscored by data from the Hungarian Investment Promotion Agency (HIPA): €10.3 billion in new investments in 2024—marking the second consecutive year exceeding €10 billion—with China contributing €5.28 billion (51% of the total). Chinese new energy vehicle (NEV) and battery giants like CATL and BYD have been central to this growth. K?vér stressed that Hungary's "strategic location within the European Union" and competitive costs make it a "conducive environment" for Guangdong firms eyeing Europe.
The exterior of a BYD Co. electric vehicle showroom, operated by Schiller Auto, in Budapest (Photo: CFP)
"We can expect further strengthening of these relations, particularly in sectors such as trade, investment, and people-to-people exchanges," he added. "Hungary's diplomatic presence in Guangzhou and the increasing frequency of visits underscore the importance both countries place on this relationship."
K?vérnoted that Hungary's strategic location within the European Union, along with its competitive investment climate, has made it an attractive destination for Guangdong-based enterprises. As the first European country to sign a BRI cooperation MOU with China, Hungary offers Guangdong businesses access to the European market while providing an environment conducive to growth with lower operating costs compared to other EU member states.
Cultural exchanges lead to closer people-to-people ties
Beyond economics, cultural ties are flourishing. On the sidelines of the conference, Guangdong's Xinghai Conservatory of Music performed at Budapest's Hungexpo. "This transnational musical dialogue not only celebrates the rich cultural heritage of Guangdong but also provides a platform for showcasing the universality of music in bridging cultural divides," Várfi remarked. Enhanced by China's 2025 visa-free policy for Hungarians and direct flights between Guangzhou and Budapest, people-to-people exchanges are surging.
Artists performed at Budapest's Hungexpo in 2024. (Photo: Guangdong Musician Association)
"These initiatives are expected to foster closer ties in tourism, education, and cultural exchanges," Várfi stated. "With such initiatives, we anticipate an increase in student exchanges, business cooperation, and a greater mutual understanding between Hungarian and Chinese citizens." As Hungary cements its role as a Central European hub for Chinese engagement, the partnership—spanning trade, tech, and culture—exemplifies how middle powers are navigating a fragmented global order.
Reporter: Guo Zedong
Poster: Cai Junru
Photo: Deng Yingheng
Editor: Yuan Zixiang, James, Shen He
