MWE Correspondent
Hungary is deepening its economic and diplomatic relations with China, a move that is raising eyebrows among European Union (EU) member states.
This strategic pivot is marked by significant Chinese investments in Hungary’s infrastructure and technology sectors, aligning with Prime Minister Viktor Orbán‘s “Eastern Opening” policy aimed at diversifying the nation’s international partnerships.
Elevated Strategic Partnership
In May 2024, Chinese President Xi Jinping visited Budapest, where both nations agreed to elevate their relationship to an “all-weather comprehensive strategic partnership.” This designation places Hungary among a select group of countries with which China maintains its closest diplomatic ties. The partnership encompasses cooperation in various sectors, including infrastructure, energy, and cultural exchange. (Source)
Major Chinese Investments in Hungary
Hungary has become a focal point for Chinese foreign direct investment (FDI) in Europe. Notably, Chinese electric vehicle (EV) manufacturer BYD announced plans to establish its first European factory in Szeged, aiming to commence production in the latter half of 2025.
Additionally, battery producer CATL is constructing a €7.5 billion plant in Debrecen, further solidifying Hungary’s role as a hub for Chinese greenfield investments. (Source)
EU’s Growing Concerns
The European Commission has expressed apprehension over Hungary’s increasing alignment with China. In March 2025, it launched a probe into potential unfair subsidies received by BYD for its Hungarian plant, citing concerns over market distortions and competition within the single market. (Source)
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Furthermore, Hungary’s recent legislation restricting LGBTQ+ rights has intensified tensions with the EU. A coalition of 20 EU member states condemned the laws, arguing they violate fundamental EU values such as human dignity, freedom, and equality. The European Commission is considering legal action in response. (Source)
Strategic Implications
Hungary’s deepening ties with China reflect a broader strategy to assert greater autonomy within the EU framework. By positioning itself as a bridge between East and West, Hungary aims to leverage Chinese investments to bolster its economy while challenging the EU’s unified stance on foreign policy and human rights.
As Hungary prepares to assume the rotating presidency of the EU Council in late 2025, its unique position could influence the bloc’s approach to China–EU relations and internal cohesion. Observers will be closely monitoring how Hungary balances its national interests with its responsibilities within the EU.
