In a recent interview in the UK, Hungarian Minister of Foreign Affairs and Trade Peter Szijjarto said that Hungary has ascended to become the world's second-largest producer of electric vehicles (EVs), a milestone achieved largely through partnerships with Chinese EV companies, China Central Television reported on Wednesday. Szijjarto's disclosure underscores the perspective that China's swift progress in the EV sector should be viewed as an opportunity rather than a threat.
The realm of EVs is not only a burgeoning industry but also one currently encumbered by tariffs and protectionist trade policies. Szijjarto's remarks illuminate the transformative impact of international collaboration on industry growth and technological innovation. Through bolstering ties with Chinese enterprises, Hungary has not only catalyzed its economic expansion but also positioned itself as a vanguard in the auto industry's green revolution. The Hungarian experience exemplifies the immense potential for shared advancement through cooperation with Chinese firms.
China and Hungary possess complementary advantages in the EV sector, fostering a positive momentum for cooperation in components and the industrial chain that leads to a win-win situation for both nations. Their collaboration in new-energy vehicles has not only advanced mutual development in this field but has also strengthened overall economic and trade relations between the two countries.
In recent years, China's new-energy vehicle industry has developed rapidly, boasting advanced technology and a complete industrial chain. Hungary, a traditional important manufacturing location for the vehicle industry of Europe, attracted some Chinese EV makers and component producers to build plants there. In December 2023, BYD announced plans to build a complete vehicle production base for new-energy vehicles in Szeged, Hungary. In August 2023, Chinese battery maker Sunwoda announced a plan to build its first European factory in Hungary with an initial project investment amount not exceeding 1.9 billion yuan ($258.5 million).
The auto manufacturing industry, along with its supply chain, plays an important role in the Hungarian economy. Today, this sector is being further strengthened through mutually beneficial cooperation with China. An increasingly integrated supply chain for EVs has emerged between European countries and China. To continue advancing this industry, both free investment and free trade are essential.
Hungarian Minister for National Economy Marton Nagy said in an interview in 2024 with the Xinhua News Agency that, regarding Chinese EVs, the more constructive approach is to strengthen cooperation with China, rather than impose punitive tariffs. Dialogue and cooperation are the best solutions, according to the Hungarian minister.
Dialogue and cooperation are not only crucial for the EV supply chain between China and Hungary, but also for the broader EV ecosystem connecting China and Europe. The economic complementarity of China and European countries creates potential for cooperation in the field of EV supply chains, which shouldn't be sabotaged by tariff and non-tariff barriers. If the potential for collaboration is fully realized and the disruptive effects of trade protectionism are mitigated, we can expect to see accelerated growth in the European EV industry.
In recent times, the US has frequently implemented tariff policies, significantly heightening global economic uncertainty. Against this backdrop, the European economy has also faced its share of external pressures.
Collaboration presents a promising pathway for invigorating the European economy, a reality vividly illustrated by EV industry collaboration between China and Hungary. At a time when Europe grapples with the substantial pressure of US tariff threats and strives to stabilize its economy, the remarkable growth of the Hungarian EV industry, fueled through Chinese cooperation, offers valuable insights. For those in Europe still deliberating over China's role - an opportunity or a threat, a collaborator or a competitor - the success story of this partnership may offer some much-needed perspective.
Through collaboration with Chinese enterprises, Hungary has enhanced its own technological capabilities. In this process, local companies have absorbed advanced production technologies and management experience, while also strengthening their own research and development capabilities. These efforts have helped Hungary occupy an increasingly important position in the global EV industry.
Just as what Hungarian Minister for National Economy Marton Nagy said in a Xinhua report in September that Chinese EV technology is neither the threat nor a danger, but a development opportunity.
