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Strengthening Ties Between Hungary and Guangdong

Hungary's strategic geographical position within Europe serves as a significant advantage for businesses in Guangdong. Recently, the Guangdong-Hong Kong-Macao Greater Bay Area-Hungary (Europe) Economic and Trade Cooperation Conference took place in Budapest, emphasizing the necessity for collaboration in sectors such as automotive, biomedicine, green technologies, and ICT.

A New Era of Cooperation

During the conference held on May 16, numerous agreements were signed, marking a pivotal step in strengthening ties between the two regions. Péter Várfi, the Hungarian Consul General in Guangzhou, stated that this partnership could lead to in-depth collaboration across emerging strategic industries. “This cooperation will undoubtedly catalyze further partnerships in key industries including automotive, biomedical, and green technology,” he noted.

The collaborative spirit was evident as officials emphasized the mutual benefits of their partnership, with Hungary providing a gateway to European markets while Guangdong showcases its innovative technologies, particularly in battery manufacturing and clean energy.

Investment Magnet

Moreover, Hungary's appeal as an investment center is underscored by the Hungarian Investment Promotion Agency (HIPA), which reported €10.3 billion in new investments in 2024, marking the second consecutive year above the €10 billion mark. Notably, Chinese contributions accounted for €5.28 billion of this total. Major players like CATL and BYD, known for their new energy vehicles and batteries, significantly contribute to Hungary's growth in this sector.

László Kövér, the President of the Hungarian National Assembly, emphasized that Hungary’s strategic location in the EU and competitive investment climate make it an ideal choice for Guangdong-based businesses looking to expand into Europe. “The strategic position of Hungary within the EU and its competitive investment costs create a favorable environment for Guangdong enterprises,” Kövér added.

Expanding Cultural Ties

Beyond economic partnerships, cultural exchanges are also flourishing. During the conference, artists from the Xinghai Conservatory of Music showcased their talents at Budapest's Hungexpo, further enhancing cultural dialogue. “This musical dialogue not only celebrates Guangdong's rich cultural heritage but also provides a platform to bridge cultural gaps,” Várfi remarked.

Looking forward, initiatives such as visa exemptions for Hungarians by Chinese authorities by 2025, along with direct flights between Guangzhou and Budapest, are expected to boost people-to-people exchanges between the two countries. According to Várfi, these endeavors aim to strengthen ties in tourism, education, and cultural exchanges.

“We anticipate an increase in student exchanges, commercial cooperation, and a better mutual understanding between Hungarian and Chinese citizens,” he stated.

Overall, as Hungary establishes itself as a central hub for Chinese engagement in Europe, the partnership with Guangdong reflects how mid-level powers are adeptly navigating an increasingly fragmented global order.

By securing agreements that span various sectors, from commerce and technology to culture, both Hungary and Guangdong are on a promising path to needless, shared growth.