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Clean energy, infrastructure and trade initiatives between nations

By WANG JINHUI | China Daily | Updated: 2024-10-17 16:20
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Construction workers on the Hungary-Serbia railway carry out track connection work on the Novi Sad-Subotica section on April 25 in Backa Topola, Serbia. [Photo/China Railway International Group]

China and Hungary are strengthening bilateral ties through closer cooperation in clean energy, infrastructure and trade, marking a new era of strategic partnership.

At a recent reception in Budapest, Hungary's capital, to celebrate China's National Day and the 75th anniversary of the establishment of diplomatic relations, Chinese ambassador Gong Tao said the two nations have "remained true to their original aspirations over the past 75 years and will continue to deepen pragmatic cooperation in various fields", while Laszlo Kover, speaker of Hungary's National Assembly, emphasized the mutual respect and win-win cooperation. He noted Hungary actively participates in the joint construction of the Belt and Road Initiative and is willing to continue playing its role as a bridge between the East and West, advancing bilateral relations to a new level.

Infrastructure remains a cornerstone of China-Hungary cooperation, with several projects within the BRI framework reshaping regional connectivity. Recently, a major milestone was reached with the completion of structural engineering for the Chinese-built section of the Hungary-Serbia railway. Track-laying is now nearing its final stages, and once finished, the project will move forward with accelerated construction of station buildings, contact networks, power substations and communication and signaling systems.

Aimed at enhancing the efficiency of China-Europe trade routes while promoting regional economic development, the Hungary-Serbia railway spans about 350 kilometers, connecting Budapest with Belgrade, Serbia's capital.

The project is expected to be completed in 2025, at which point the railway will become a critical transportation hub linking Eastern and Central Europe, significantly improving logistics and passenger transport efficiency.

Another crucial area of cooperation is clean energy, where China and Hungary are working together to address climate change and promote sustainable development. In recent years, China has played an instrumental role in Hungary's transition to renewable energy, with a particular focus on solar power, new energy vehicles and energy storage solutions.

Several Chinese companies, including leading battery manufacturer CATL and electric vehicle maker BYD, have invested heavily in Hungary's clean energy sector. CATL's EV battery plant, under construction near Debrecen, is expected to be one of the largest of its kind in Europe, while BYD has set up a manufacturing base in Hungary to produce electric buses and cars, further strengthening the country's position as a hub for new energy vehicle production.

In a recent interview with Xinhua News Agency, Marton Nagy, Hungary's minister for national economy, stated his government supports economic openness and connectivity, and that Chinese companies entering the EU market "is a win-win scenario because Hungary is a gateway for China".

Nagy noted that Hungary and China "are friends with deep mutual trust and a strong relationship. We treat the Chinese people with friendship and goodwill and welcome them to visit Hungary."

China is Hungary's largest trading partner outside Europe, while Hungary is one of China's most important trading partners in Central and Eastern Europe. In 2023, bilateral trade reached $14.52 billion.

Moreover, from January to June this year, bilateral trade totaled $7.74 billion, with China exporting $5.37 billion and importing $2.37 billion.

The bulk of China-Hungary trade involves high value-added electromechanical and high-tech products, with four key sectors — motors, electrical equipment and parts; boilers and mechanical appliances and parts; vehicles and parts; and optical, photographic, and medical devices — accounting for over 80 percent of bilateral trade.

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