"The “Hungarian Season" in China will kick off on Sunday, with the aim of promoting Hungary's tourism, culture and enhance economic co-operation between the two countries. The venue, which will run until April 2008, will be held in four sections at nine locations. It will be opened by Hungarian Prime Minister Ferenc Gyurcsány in Beijing.n the past years, China has become Hungary's fifth-largest trading partner, with imports from China to Hungary coming to around USD 3.8 billion in 2005. Last year, trade between Hungary and China totaled USD 4.6 bn, the highest figure with China out of all the countries in Central and Eastern Europe.
There are about 40,000 Chinese trading companies in Hungary, including numerous small traders.
While Hungary attracted close to USD 80 bn altogether during the last 17 years, Chinese investment represents only about USD 200 m. Germany, by contrast, has invested more than EUR 15 bn, but Hungary hopes to become the gateway for China to Europe for manufacturing and distribution, Csaba Kilián of investment agency ITDH told Business Hungary a few months ago.
Kilián warned that the investments should be chosen carefully, finding the areas that are competitive in the long term. "I think it's really important for the country to find those technology-intensive Chinese companies that can be competitive long-term in Europe," he told Business Hungary. He believes sectors ripe for development include biotech, software development and hightech automotive products.
During his visit, PM Gyurcsány plans to sign a number of major economic agreements with China. Besides co-operation in the area of IT, agriculture and environmental protection, the most important contract will be on the establishment of the China Brand Trade Center in Budapest. Chinese Parliament Chairman Wu Bangguo said on his visit to Hungary late in May that his country was taking the project very seriously.
The USD 1 billion commercial hub - in Asia Center and the adjacent China Mart in Budapest's northeastern 15th district - will allow 2,000 of the biggest Chinese companies, specialising in electronics, computers, software and construction, to market and sell their goods across the European Union. It will also be an information and logistics center for Chinese companies doing business in Europe.
The first tenants of the commercial facility, an estimated 200 companies, are expected as soon as September.
The Brand Trade Center will be the first and only of its kind in Europe and the second Chinese trading hub worldwide. The first hub, called Dragon Mart, opened in Dubai in December 2004 and serves the Middle East.
Two new buildings will be added to the Hungarian hub next door to complete a planned four-structure complex of some 200,000 sqm. The center will feature showrooms, shopping areas, restaurants and warehouses."
Source:
Portfolio Online Financial Journal
29.08.2007