Hungary's Strategic Location Offers Guangdong Firms Access to EU Markets

Strengthening Economic Ties between Hungary and Guangdong

In a significant move to enhance economic collaboration, Hungary and the Chinese province of Guangdong are solidifying their partnership through mutual interests in various sectors. The recent conference held on May 16, 2025, in Budapest, titled the 'Guangdong-Hong Kong-Macao Greater Bay Area-Hungary Economic and Trade Cooperation Conference', served as a pivotal platform for fostering cooperation in industries such as automotive, biotechnology, green technologies, and ICT (Information and Communication Technology).

During the conference, numerous agreements were signed, signaling a commitment from both governmental officials and industry leaders to expand joint ventures and innovation. Péter Várfi, Hungary's Consul General in Guangzhou, emphasized the potential for deeper collaboration in strategic sectors. He noted, 'Guangdong leads in innovations, especially in battery manufacturing and clean energy—areas where Hungary offers strong collaboration potential.' The strategic location of Hungary as an entry gateway to the EU provides companies from Guangdong with crucial access to European markets, while Hungary benefits from Guangdong’s technological advancements.

The conference follows high-level exchanges, including a visit from the Speaker of the Hungarian National Assembly, László Kövér, to Guangdong in November 2024. These connections reflect a mutual commitment to deepen political, economic, and cultural collaborations, as outlined in Hungary's 'Eastern Opening' policy and China's Belt and Road Initiative (BRI). Várfi stated, 'We can expect further strengthening of these relationships, particularly in trade, investment, and people-to-people exchanges.'

Hungary's Investment Landscape

Hungary's appeal as an investment hub is highlighted by data from the Hungarian Investment Promotion Agency (HIPA), reporting €10.3 billion in new investments in 2024 alone, marking the second consecutive year of exceeding €10 billion. Notably, out of this total, Chinese investments contributed €5.28 billion, accounting for 51% of the overall amount. This growth has been largely driven by Chinese giants in the new energy vehicle (NEV) and battery sectors, such as CATL and BYD. Kövér accentuated Hungary's strategic position within the EU and its competitive costs as factors that create a favorable environment for Guangdong firms looking towards Europe.

Looking ahead, Kövér added, 'We can anticipate further strengthening of relationships, especially in sectors like trade, investments, and cultural exchanges.' He underscored how Hungary's diplomatic presence in Guangzhou and increasing reciprocal visits demonstrate the significance both nations attach to these partnerships.

Enhancing Cultural Bonds

Cultural exchanges between the two regions are also flourishing alongside economic ties. The recent conference coincided with performances from the Xinghai Conservatory of Music from Guangdong at the Hungexpo in Budapest. Várfi commented, 'This transnational musical dialogue not only celebrates the rich cultural heritage of Guangdong but also showcases music's universality in bridging cultural divides.' Thanks to the visa-free policy implemented by China for Hungarians until 2025, along with direct flights connecting Guangzhou and Budapest, interpersonal exchanges are rapidly expanding.

Várfi stated, 'These initiatives are expected to foster closer ties in tourism, education, and cultural exchanges.' The expected increase in student exchanges, trade cooperation, and better mutual understanding between Hungarian and Chinese citizens is set to further enhance these connections. As Hungary cements its role as a Central European hub for Chinese engagement, partnerships that encompass trade, technology, and culture exemplify how regional powers navigate a fragmented global landscape.

In conclusion, the burgeoning relationship between Hungary and Guangdong signifies not just an economic partnership but a broader cultural and strategic alliance beneficial for both sides, potentially reshaping their roles on the global stage.