The Hungarian government has reaffirmed its commitment to maintaining strong economic relations with China, even as it continues its ties with the United States, which views China as a competitor.
This position was shared by Hungary’s Minister of Economy, Márton Nagy.
Nagy explained that he does not foresee any American investments on the horizon that could effectively replace those from China. Another challenge, he noted, is that the U.S. has yet to reach an agreement on a new tax treaty with Hungary, after the previous one was ended by the Biden administration.
“We do not see investment potential from the U.S. that could match China. We take a very pragmatic position,” Nagy emphasized.
The article also recalls that the administration of former U.S. President Donald Trump had pressured Hungary to reduce its reliance on China, as Beijing became a major partner for Budapest, particularly in electric vehicle production and telecommunications.
On Friday, Donald Trump Jr., the son of the former president, urged Hungary and other Eastern European nations with ties to China to shift their economic focus toward the United States.
His statement echoed the views of U.S. Special Envoy Robert Palladino, who described China as a “strategic challenge” that requires “vigilance, transparency, and unity” among Western nations.
Some of the largest recent investors in Hungary include Chinese battery maker Contemporary Amperex Technology Co. and the global electric vehicle company BYD Co.
Hungary has also strengthened its partnership with Huawei Technologies Co., agreeing to collaborate on a cloud services platform with 4iG Nyrt., a defense and telecommunications firm that is under consideration for national leadership by Hungarian Prime Minister Viktor Orbán.
It is also noteworthy that Orbán has worked to cultivate positive relations with the Trump administration, being the first EU leader to publicly congratulate Trump on his 2016 election win, even before official results were finalized.
