Xi Jinping in Hungary to Sign Deals Boosting Chinese Economic Influence

Chinese President Xi Jinping's recent arrival in Hungary marks a significant moment in the deepening economic relations between China and the Central European nation. This visit, part of Xi's five-day European tour, culminates in Budapest, where he is slated to engage in discussions with Prime Minister Viktor Orbán and President Tamás Sulyok. The agenda is heavily focused on future Chinese investments in Hungary, highlighting the country's strategic pivot towards fostering economic ties with Beijing amidst a broader European trend of adopting more protectionist measures.

Hungary, under Orbán's nationalist populist leadership, has notably diverged from the mainstream European stance by embracing China's Belt and Road Initiative, becoming the first among the 27 EU member states to do so. This move underscores Hungary's nuanced position, balancing its EU and NATO memberships with an openness to establishing diplomatic and trade relations with autocratic regimes.

During Xi's inaugural visit to Hungary as president, at least 16 bilateral agreements are anticipated to be signed, as confirmed by Hungary's Foreign Minister Péter Szijjártó. These agreements are expected to further expand the Belt and Road Initiative's footprint in Hungary, with potential investments spanning infrastructure and energy sectors. Szijjártó hailed the visit as "historic," emphasizing China's role as Hungary's top foreign investor in 2023.

Prior to reaching Budapest, Xi's tour included a stop in Serbia's capital Belgrade, where he inked a deal on building a "shared future" with the Balkan state. Both Serbia and Hungary are viewed as allies of Russia's Vladimir Putin, adding layers of geopolitical nuance to Xi's European engagements. Despite claiming neutrality in the Ukraine conflict, China has faced criticism for not denouncing Russia's actions as an invasion and allegedly supporting Russia's military capabilities.

The discussions between Xi and Orbán are expected to touch upon the war in Ukraine, with Hungary advocating for China to play a pivotal role in facilitating peace talks between Russia and Ukraine. Hungary has condemned Russia's invasion but has also expressed resistance to EU sanctions against Moscow and refrained from offering military support to Kyiv.

Amidst these high-level talks, Budapest witnessed demonstrations advocating for Tibetan autonomy, highlighting concerns over China's human rights record. Tibor Hendrey of the Tibet Aid Society underscored the importance of Hungary's economic partnership with China but cautioned against embracing a country known for its questionable stance on democracy and human rights.

This visit by Xi Jinping not only signifies a strengthening of Sino-Hungarian relations but also places Hungary at a crossroads of international diplomacy and domestic policy considerations. As Hungary navigates its role within the EU and its relationships with global powers like China and Russia, the outcomes of these discussions could have far-reaching implications for the region's economic and geopolitical landscape.