We are proud that Hungary is the leading destination for Chinese business investment in Central Europe, Minister for Economic Development says

Hungary disapproves of policies which promote bloc-building, and strives for peace, cooperation and connectivity between the West and the East, the country's Minister for Economic Development, Márton Nagy said in his speech at China's 6th International Import Expo in Shanghai.

According to MTI, the minister stressed that "we are proud that Hungary is the leading destination for Chinese business investment in Central Europe. The success of the government's policy known as "Eastern Opening" is seen in the fact that by the end of 2023, more than one third (34 percent) of foreign direct investment (FDI) will have come to Hungary from Eastern countries, while in 2010 this was less than 10 percent". Hungary is in the process of establishing a complete ecosystem for producing electric cars, in which Eastern and Western companies will work together to produce electric motors, batteries, solar panels, electric chargers and entire cars, he added.

Nagy believes that the current total FDI stock of €100 billion could double by 2030. Strong FDI inflows have three important benefits, one of them being a significant increase in macroeconomic investment, production and the country's foreign trade. According to Nagy, exports as a share of GDP could reach 100 percent by 2030 while the country's export complexity could remain at the top of the world rankings, all of which will help Hungary reach 90 percent of the EU's development level by the end of the decade.

The minister also said that the government's objective is to increase the number of Tier 1, or top-tier, Hungarian suppliers in the supply chains of factories operating in Hungary. He said that another advantage of this would be that increased trade activity could give a boost to the logistics sector. The logistics sector currently accounts for 5 percent of the country’s GDP, but it should be increased to 10 percent by the end of the decade. It is important that goods produced in Hungary be distributed by Hungarian carriers.

According to Márton Nagy, "there are three prerequisites for the continued attraction of foreign capital and the successful economic policy based on it". The infrastructure must be developed further, and there must be sufficient and cheap energy, as well as an adequate and skilled workforce available.

The minister also said that the Belt and Road Initiative (BRI) is currently the most comprehensive project in world politics. Nagy pointed out that although there are certain ongoing joint priority investments – such as the Budapest-Belgrade railway line – Hungarian participation in the BRI infrastructure development is low compared to that of other countries.

While in China, Márton Nagy held talks with the leaders of the world's biggest bank, ICBC (Industrial and Commercial Bank of China). During the meeting,

he reiterated Hungary's ambition to not only become the economic meeting point of Western and Eastern capital and high tech, but a regional financial centre as well.

Given the already significant business activities of ICBC in Hungary, the country's government is committed to ICBC opening a branch in the country.

ICBC wouldn't be the first Chinese bank to open a branch in Hungary: CCB, (China Construction Bank) the world's second largest bank, already established a branch in the country in April this year.