Is China using Hungary as its bridgehead in Europe?
The first objective of Xi Jinping’s three-day go to to Hungary is perhaps to make sure that Hungary will help China acquire market share within the EU, as Beijing and Budapest put together to signal a complete of 16 bilateral agreements.
The Chinese language president has arrived in Budapest late Wednesday, within the third and final cease of his European go to.
Throughout his three-day keep, Xi Jinping and his delegation are anticipated to conclude a sequence of financial agreements with Budapest, as China sees Hungary as an essential bridgehead in conquering European markets: amongst different issues, Chinese language firms are constructing electrical automotive and battery factories.
The 2 sides are anticipated to signal 16 agreements, whereas one other two are nonetheless being negotiated. The offers embody Hungarian infrastructural developments and railway, highway and power tasks associated to Beijing’s top-priority Belt and Street Initiative.
Renovation work is underway on the Budapest-Belgrade railway line, one of many symbols of China’s financial growth in Hungary: 85% of the funding is roofed by Chinese language loans.
With Hungary and Serbia’s cooperation, the modernised railway meant to be part of the deliberate Budapest–Belgrade–Skopje–Athens railway would assist Chinese language items attain Western Europe from the Greek China-run port of Piraeus sooner than ever.
The railway has been sharply criticised since its inception. Earlier in 2023, questions had been raised about whether or not the imported expertise wanted to function it complies with EU requirements.
Different critics have identified it bypasses all main Hungarian cities; the Chinese language credit score for its building would possibly take a complete century to pay again in full, whereas the funding return is beneath query.
It is (virtually) all concerning the cash
Private pursuits additionally play a job within the big investments, worldwide relations and Hungarian politics professional Csaba Káncz informed Euronews.
“Within the case of Hungary, we’re speaking about essentially the most corrupt member state of the EU. Similar to with Russia, the Hungarian regime has entered into some form of a ‘strategic corruption’ framework settlement [with China]. With Russians, we all know that that is … overpriced gasoline,” Káncz mentioned.
“With the Chinese language, it is the Budapest-Belgrade railway line, from which the regime … can take out a number of billion euros a yr.”
In response to Káncz, it is not nearly pure funding, and Xi can also be visiting Europe as a safety coverage ally.
“Hungary has already turn out to be an official member of the so-called ‘peace camp’, the identical peace camp from the Fifties [during the Cold War]. We’re speaking about revisionist, pro-war powers, Russia, China, Iran,” he mentioned.
“In follow, China has now turn out to be the ‘alpha male’ of the Eurasian axis. It’s the dominant energy, it has the cash and expertise and right here it’s on a go to to its new colony,” Káncz concluded.
In the meantime, EU officers have already said they need to restrict China’s financial aspirations in Europe.
The European Fee has launched an investigation into Chinese language state subsidies for manufacturing electrical automobiles and photo voltaic panels, accusing the Beijing management of distorting market competitors.
Watch the Euronews report on Chinese language President Xi Jinping’s go to to Hungary above.