Diplomat hails China-Hungary relations

"We've come a long way," said Csaba Korosi, a Hungarian diplomat who served as president of the 77th session of the United Nations General Assembly from September 2022 to September 2023, reflecting on 75 years of diplomatic relations between China and Hungary. In an exclusive interview with China Daily during his visit to Beijing, Korosi emphasized the significant milestone of the all-weather comprehensive strategic partnership established in May 2024.

Hungary has become a key player in China's economic engagement in Europe. Under the Hungarian government's "Opening to the East" policy, adopted in 2012, and the Belt and Road Initiative, launched in 2013, bilateral trade and investment have grown significantly, positioning Hungary as China's economic gateway to Europe.

Korosi explained that "the opening to the East does not mean it was previously closed to the East" but rather represents "a strategic shift".To ensure healthy national development, it is essential to establish beneficial cooperation with global economic powerhouses, particularly China, which he described as a key driver of the world economy today.

The scale of Chinese investment in Hungary underscores this shift. According to the Hungarian Investment Promotion Agency, China leads in investment volume, with 5.2 billion euros ($5.64 billion), accounting for 51 percent of the total. In 2024, China was Hungary's largest source of foreign direct investment.

China's investments, particularly in the automotive and electric vehicle industries, have transformed Hungary into a key hub for sustainable transportation in Europe. Chinese companies such as battery maker Contemporary Amperex Technology and EV maker BYD have established production facilities in Hungary, reinforcing the country's role in the green transformation of the European automotive sector.

These investments align with Hungary's industrial strategy, which prioritizes green transportation and battery manufacturing.

Korosi, who was previously director of environmental sustainability at the Office of the President of Hungary, acknowledged this shift, stating, "The transport industry is going to become less and less environment- and climate-harming. That is a trend that is harmonizing with our climate policies, with our climate agreements and our agreements on fulfilling the 17 Sustainable Development Goals."

China's growing economic influence in Hungary coincides with rising global trade tensions. Korosi warned that global cooperation on issues like climate change and water is crucial. If geopolitical rivalry dominates these areas, it will not only lead to a zero-sum game, but could devolve into a negative-sum game, where everyone loses.

He noted that the world is moving toward a deepening geopolitical divide, where economic cooperation is increasingly overshadowed by political rivalries, and markets are fragmenting into regional blocs. He believed that such divisions risk undermining global trade, technological collaboration, and broader transformation efforts agreed upon by the international community.

Looking ahead, Korosi emphasized the need for institutional reforms within the UN and other global governance structures, noting that the current system, created after World War II, no longer reflects today's realities. "It would be much more frank and just to those countries that were not even there at the creation of the United Nations, of the Bretton Woods institutions, to make sure that they also have their say on equal footing," he added.