“A message for the EU”: Xi Jinping arrives on Wednesday in Viktor Orban’s Hungary, China’s best friend in the European Union

Numerous factory projects, billion-euro investments and the same kind of ties with Russia: under the leadership of Viktor Orban, Hungary has moved even closer to China, distancing itself from the rest of the EU, writes France Presse, as Xi Jinping is expected on Wednesday evening in Budapest.

This is the third – and last – leg of the Chinese president’s European tour, which was in Serbia and France the other day, where Xi Jinping met with Emmanuel Macron. More about the Stakes of Xi Jinping’s visit to three European countries, here.

“A historic visit,” Hungarian Foreign Minister Peter Szijjarto said of Xi’s visit to Budapest, noting that his country had not been honored by a Chinese president in two decades.

And, unlike the firmness shown by the Europeans in the face of growing trade tensions with China and criticism of Beijing’s stance on the war in Ukraine, Xi Jinping is arriving on ground already conquered, writes AFP.

Xi’s visit to Hungary, a message for the EU

“He is sending a message to the European Union” by choosing to visit Hungary, “the last country that is openly pro-China” among the 27, Tamas Matura, associate professor at Corvinus University, told AFP.

For Viktor Orban, this is a “diplomatic success”, the result of his policy of opening up to the East: since coming to power in 2010, he has launched a rapprochement offensive. And while Brussels has distanced itself from Beijing, he established closer ties, refusing to enter into the ideological confrontation of the two “blocs”.

Contrary to the de-risking strategy adopted by the rest of Europe in relation to China, Hungary rolled out the red carpet for this Asian superpower, which last year became the largest investor in the country.

“The solid bilateral relationship inspires confidence in Chinese companies, who are not afraid of unpleasant political developments disrupting their business,” explained political scientist Yan Xuetong of the prestigious Tsinghua University, who was in Budapest recently.

Mega-factories, loans, high-speed rail

Despite its small size (it has only 9.6 million inhabitants), Hungary has recorded a wave of investments since 2022, especially in the field of electric cars and batteries.

Factories are popping up everywhere at an impressive pace: giant CATL is building a mega-factory near Debrecen (east), while BYD will produce vehicles in Szeged (south) from next year. According to the government, the current projects will be around 15 billion euros.

In return, Chinese companies get tax breaks, infrastructure subsidies and job offers for their workers.

Hungary has also received loans from Beijing under the New Silk Roads programme, known as the Belt and Road. A high-speed rail line is to be built between Budapest and Belgrade, although the project is late

Cooperation is expanding in all directions: Budapest has bought Chinese Covid-19 vaccines, promised to host the first Chinese campus in the EU and recently signed a controversial security pact authorizing Chinese police to patrol Hungarian territory.

This has raised concerns among the opposition, who denounce the lack of transparency around the contracts, the environmental impact of the battery factories and corruption, with the construction enriching what they say is “Orban’s circle”.

Hungary proved “useful” to Beijing

Beyond its economic ties, Tamas Matura points out that Hungary has proved “useful” to Beijing. Regularly criticized by his Western partners for his authoritarian leanings, Viktor Orban has repeatedly used his veto to block or moderate the EU’s critical statements against China, especially on human rights.

A logic that could also be applied to NATO, says Matej Simalcik, from the Central European Institute for Asian Studies in Slovakia. Hungary, which has been a member of the alliance since 1999, stands out from its partners by denouncing “war fever” and calling for a ceasefire.

“We are in absolute agreement” with China on the Ukrainian issue, insisted Peter Szijjarto. Beijing presents itself as a neutral party and regularly calls for a political solution to end the fighting in Ukraine, while remaining close to the Kremlin. As Budapest, writes France Presse.