Despite trans-European disapproval, Hungary has opened itself up to Chinese tech.
It has also built 36 factories for Electric Vehicle batteries.
Meanwhile, China has made itself at home in Hungary with its CATL factory, the Chinese SemCorp separator foil factory, Eve Energy, and the Chinese EcoPro cathode plant. A Chinese „gigafactory” for BYD electric cars is being prepared.
China has an astonishing 79% share of the lithium-ion global battery manufacturing capacity, ahead of the US on 6%. Hungary is now third with 4% and aims soon to overtake the Americans, explained Peter Szijjarto, during his visit to China.
„We do not intend to become the world leader,” said Hungary’s foreign minister in Beijing last October, about his country’s ambitious plans for manufacturing Electric Vehicle batteries, „because the world leader is China”.
By this summer, there will be 17 flights a week between Budapest and Chinese cities.
In 2023, China became the single biggest investor in Hungary with €10.7bn.
South Korean and Japanese factories have already started manufacturing batteries or battery components here.
„Hungary is in the centre of Europe and in close proximity to the biggest industrial players in the automotive industry,” says Noemi Sidlo from CATL’s Hungarian division.
Fidesz has promised CATL €800m in tax incentives and infrastructural support to clinch the deal – more than 10% of the €7.3bn investment, says the BBC.
One concern among critics is that cheap labour, cheap land, and generous government incentives will turn Hungary into a „servant-state” of Chinese and South-East Asian companies.
The government acknowledges there is a risk that wages will be kept low and domestic research and development will be affected – this will be the case for the next 10 years, they say.
But China, too, is paying its dues, with a high-speed railway intended to connect Central Europe to the ports of Thessaloniki and Piraeus.
On February 19th of this year, China offered to support long-time strategic partner Hungary on public security issues, going beyond trade and investment relations, during a rare meeting of a senior Beijing official with PM Orban.
