China's Greater Bay Area and Hungary Sign Billion-Dollar Agreements for Economic Cooperation

China's Greater Bay Area and Hungary Sign Billion-Dollar Agreements

In a landmark event, Budapest recently hosted a conference focused on enhancing economic collaboration between China's Greater Bay Area (GBA), which encompasses Guangdong, Hong Kong, and Macau, and Hungary. This conference, held on May 21, 2025, witnessed the signing of 36 investment agreements amounting to over $3.8 billion. These agreements symbolize a new chapter in the economic partnership between China and Hungary, further opening avenues for future cooperation.

One of the notable investments announced during the conference is the establishment of a new European headquarters by BYD, a leading electric vehicle manufacturer from Guangdong, in Budapest. This move is expected to significantly boost local employment as well as strengthen the technological exchange between the two regions.

The Chinese ambassador to Hungary, Gong Tao, emphasized Hungary's growing status as a favored destination for Chinese investments within Europe, asserting that collaboration between the two countries is experiencing rapid growth, with serious joint projects making swift progress.

For the second consecutive year, China has emerged as the largest source of direct foreign investment in Hungary, responsible for 51% of such investments in 2024. This trend reflects the strategic positioning of Hungary as a prime location for Chinese investors looking to penetrate the European market. Peto Erno, president of the Hungarian-Chinese Chamber of Commerce, remarked, "Hungary is an ideal site for Chinese investments in the European landscape. Being centrally located in Central Europe, we offer convenient connections to neighboring countries and the rest of the EU."

In 2024 alone, provincial investments from Guangdong into Hungary surged by 113%, with major companies like Huawei, ZTE, and BYD contributing to the creation of over 10,000 new jobs in the region. This dynamic increasing level of investment not only strengthens the bilateral relations but also enhances economic activities alongside a shared vision for technological advancement.

Hungarian Deputy Minister of Foreign Affairs and Trade, Levente Magyar, extended the discourse beyond mere economic cooperation, explaining that Hungary seeks to build friendships alongside economic partnerships. "We are not solely in search of investors; our aim is to forge friendships as well," he stated, advocating for deeper cultural and social ties between the two nations.

The GBA's remarkable growth in innovation and economic performance, paired with Hungary’s strategic geographical position and favorable business environment, fosters an effective platform for collaboration. The anticipated outcomes of these agreements promise to benefit both regions, boosting economic resilience and growth during turbulent times.

As China's influence in Hungary continues to grow, the partnerships developed at this conference signal not only a vital economic interaction but also a commitment towards sustainable cooperation in fostering innovation and shared progress. With the commitment of both Chinese and Hungarian stakeholders, the future looks bright for this dynamic bilateral relationship.