After France and its muted criticism, Xi Jinping continues his European tour with a visit to two countries considered as safe ground. The Chinese president chose to honor first Serbia on Tuesday, May 7, and Wednesday, May 8, and then Hungary until Friday with his presence. The two countries have limited demographic and economic clout, but their leaders, Serbian President Aleksandar Vucic and Hungarian Prime Minister Viktor Orban, employ a rhetoric that is highly critical of the West and appeals to the Chinese.
No criticism of human rights in China, Chinese trade policy or Beijing's support for Moscow should be expected over these four days in Belgrade and Budapest. On the contrary, Vucic intends to celebrate what he describes as the "steely friendship" between Serbia and China, while Orban wants to defend his Hungarian "policy of openness" at a time when "our most natural sales market [Western Europe] is sick." "China can count on Hungary," because the government rejects any effort that would exclude Chinese products from the European market in a form of "protectionism," promised Hungarian Economy Minister Marton Nagy ahead of the visit, in response to threats of European trade retaliation against China's policy of economic subsidies.
Both Serbia and Hungary are hoping that the visit will yield some concrete investment announcements. Vucic explained that he would ask the Chinese president for help to revive train production in his country and also for investments in advanced technologies. Hungarian media have been speculating that Chinese automaker Great Wall Motors will build a new Chinese electric vehicle plant near the city of Pecs, in the south of the country. Xi could also announce the construction of a railway between Budapest's airport and the center of the capital city.
Major investments
In just a few years, Hungary's staunchly pro-Beijing policy has made it the leading EU destination for Chinese electric vehicle manufacturers. "Compared with other countries in the region, such as the Czech Republic and Poland, Chinese companies appreciate Hungary for its 20 years of good relations with China," explained Agnes Szunomar, head of the Institute of Global Studies at the Corvinus University of Budapest.
The world's leading battery manufacturer, China's Contemporary Amperex Technology Co., Limited (CATL) has set up its second – and largest – European factory in the eastern Hungarian city of Debrecen, which will supply the major European automakers present in the region. China's multinational electric car giant BYD announced in December 2023 that it would follow suit in the southern city of Szeged. These investments will generate thousands of jobs in this Central European country, whose economy had, until now, been mainly dependent on the German car industry. Szunomar believed that "these factories should also make it possible to circumvent any trade barriers," if Brussels decides to increase customs duties on vehicles produced in China.
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