New 3 Billion Euro Investment By China in Hungary's Automotive Industry Unveiled

  • 16 May 2023 6:44 AM
  • Hungary Matters
New 3 Billion Euro Investment By China in Hungary's Automotive Industry Unveiled
China is investing 3 billion euros in Hungary's automotive industry in the coming period, Péter Szijjártó said after talks with Minister of Commerce Wang Wentao in Beijing.

The projects will further strengthen Hungary’s position as a top investment destination in central Europe, the minister of foreign affairs and trade said.

Szijjártó had talks with the chief executives of five major Chinese companies, four of which will implement investments in Hungary’s electric car industry which supplies German manufacturers.

The new investments will make a significant contribution to Hungary’s ability to maintain its economic growth, the minister said, adding that the projects would be implemented in the interest of renewing Europe’s automotive industry and meeting the demands of German manufacturers.

Chinese companies, Szijjártó said, consider the country a top destination for their investments in central Europe, noting that by the end of 2022, Hungary had the largest volume of Chinese investments in the region.

“We want to continue maintaining this trend … so we’ll encourage additional investments from China, giving them the maximum possible support,” he said.

Szijjártó: Catl Battery Plant Encourages Further Chinese Investment in Hungary

The building of the battery plant by China’s CATL in Debrecen, in eastern Hungary, is already stimulating other Chinese investments in the country, too, Péter Szijjártó, the minister of foreign affairs and trade, said in Beijing on Monday.

This is helping to boost Hungary’s competitiveness within Europe, given that Chinese investments bring the most cutting-edge technology to their new bases, Szijjártó said ahead of a working dinner with CATL CEO Robin Zeng.

Moreover, investments in the electric vehicle industry ensure that Hungary remains a leader in the fight against climate change, according to a ministry statement quoting the minister.

“This is something everyone who feels a responsibility for the environment can be proud of,” Szijjártó said.

He noted that 14 percent of global harmful emissions are linked to public road transport, adding that all green and climate goals would remain “a naive illusion” without the transition to electric vehicles.

The minister said competition for Chinese investments in Europe remained fierce.

“It’s clear that besides the competitiveness of Hungary’s investment environment, the excellent political relations between Hungary and China also play a major role in us winning these investment bids over much stronger western countries…” Szijjártó said.

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