China-Hungary Relations: A Model for a New Type of International Relations

　　As one of the first countries to recognize and establish diplomatic relations with the People's Republic of China, since the establishment of diplomatic relations between China and Hungary 75 years ago, the two countries have continuously deepened strategic mutual trust, continuously upgraded bilateral relations, and strengthened practical cooperation. From the in-depth connection between the Belt and Road Initiative and the "Open to the East" policy to the proper handling of issues involving each other's interests and major concerns in international affairs, China-Hungary cooperation has continued to reach a new level and open up a new chapter. After 75 years of development, China-Hungary mutually beneficial cooperation has achieved fruitful results, and the two countries have successfully set a model of a new type of international relations featuring mutual respect, fairness, justice and win-win cooperation. This will undoubtedly inject more stability, certainty and positive energy into the current complex and turbulent international situation and the fragmented global geopolitical economy.

　　The two countries insist on mutual respect

　　Mutual respect is the basic requirement for equal exchanges and benign interaction among countries, and is also the starting point for the democratization of international relations. In addition to the Five Principles of Peaceful Coexistence, which are the primary principles of mutual respect for sovereignty and territorial integrity, the two countries respect each other's social systems and development paths, respect each other's values, respect each other's historical, ethnic and civilization backgrounds, respect each other's core interests and major concerns, and respect each other's right to development.

　　China and Hungary have always adhered to treating each other as equals, seeking common political and economic interests from each other, and maintaining and promoting the development of bilateral relations. The Hungarian Government has long adhered to the one-China principle and supported China's peaceful reunification. China and Hungary carry out the Belt and Road joint construction project without attaching any political conditions or seeking any political self-interest, and the cooperation between the two sides is based on voluntariness, equality and mutual benefit. China and Hungary resolutely do not agree to "bullying the small with the big", artificially creating conflicts and creating inequality in international relations, and actively advocate an equal and orderly multipolar world and inclusive economic globalization.

　　China and Hungary are committed to inclusiveness and mutual learning. Both countries are countries with a long history, as early as the Yuan Dynasty and the Ming Dynasty, the two countries have had friendly exchanges. China and Hungary actively advocate exchanges and mutual learning among multiple civilizations, enhance understanding of each other's cultures, and learn from each other's outstanding achievements in civilization. The exchanges and cooperation between the two countries in the fields of literature, music, architecture, medicine, science and technology, economy and trade, etc., have yielded fruitful results. It is precisely on the basis of such mutual respect that China-Hungary relations can move forward steadily and vigorously in the turbulent international situation.

　　The two countries uphold fairness and justice

　　Fairness and justice are the ethical requirements of rationalization and rule of law in international relations. China and Hungary insist on calling on the international community to practice true multilateralism, oppose any country's monopoly on international affairs, oppose all forms of hegemonism and power politics, and emphasize the need for international rule of law to safeguard fairness and justice in international politics. In addition, both China and Hungary have a correct outlook on justice, interests, and security, and both sides support each other's basic positions on international affairs. Since the outbreak of the Ukraine crisis, Hungary has been calling for a ceasefire, refusing to follow the United States and not being used as a "pawn" on the European "chessboard"; China issued a document entitled "China's Position on the Political Settlement of the Ukraine Crisis", calling for a peaceful settlement of the crisis. The two countries have always maintained close communication and coordination in international affairs, and have actively voiced the call for "building and maintaining peace" and worked hard to raise the volume of the peace camp. In the face of China's rise, some Western countries continue to exaggerate and spread the "China threat theory" in an attempt to smear China's image and suppress China's development. However, Hungary has always insisted on looking at China objectively and regarding China as an opportunity and a partner. Hungarian Prime Minister Viktor Orban has said that China's rise is the return of 5,000 years of civilization, and the international community should rationally view China's rapid development and accept the objective fact of China's rise. On the basis of China and Hungary's adherence to fairness and justice, and their ability to reach consensus on international affairs and give each other understanding and support, the relations between the two countries have been able to continue to move forward.

　　The two countries pursue win-win cooperation

　　Win-win cooperation is an important part of the democratization and rationalization of international relations. The concept of win-win cooperation has surpassed the old concepts of bloc confrontation and the Cold War mentality, abandoned the "competition narrative" of zero-sum game, and has become a requirement for the development of international relations in the new era. Since the establishment of diplomatic relations between China and Hungary, cooperation and exchanges have never been interrupted. Hungary has always opposed "de-risking" and "decoupling from China". Orban said that every effort must be made to establish the closest possible economic relations between China and Hungary. While the political relations have been developing smoothly, the exchanges and cooperation between China and Hungary in the fields of economy and trade, science and technology, culture and education have also been expanding, and there are many bright spots.

　　1. Economy, trade and investment

　　In recent years, China is gradually overtaking Germany and the United States as the largest source of investment in Hungary, and Chinese companies have created a large number of jobs in Hungary. Hungary has also become one of China's most important trading partners in Central and Eastern Europe. According to statistics, the bilateral trade volume between China and Hungary in 2023 will reach 14.52 billion US dollars, an increase of 73% compared with ten years ago. China and Hungary are also investing in a wide range of areas, mainly in the fields of chemical manufacturing, electric vehicles, renewable energy, information and communication. Many Chinese companies have invested in Hungary, such as CATL, BYD, Wanhua Group, Halma Group, NIO, Li Group, etc. According to Hungarian statistics, China's direct investment in Hungary in 2023 will be 7.6 billion euros, accounting for 58% of Hungary's total foreign direct investment, making China the largest source of foreign investment in Hungary again after 2020. The economic, trade and investment relations between the two countries have become closer and closer, and cooperation projects have been implemented one by one, effectively benefiting the people of the two countries.

　　2. Financial cooperation

　　In the field of financial cooperation, China and Hungary have also achieved fruitful results. Bank of China, China Construction Bank and China Development Bank set up branches in Hungary; The Hungarian Central Bank was one of the first central banks in Europe to sign a bilateral currency swap agreement with the People's Bank of China; China and Hungary have renewed their currency swap agreements for several times, and Bank of China Hungary Branch has become the first RMB clearing bank in Central and Eastern Europe. In addition, in 2021, Hungary successfully issued a green sovereign panda bond of RMB 1 billion with a maturity of 3 years in China's interbank bond market. This is the first time that an overseas sovereign country has issued green sovereign panda bonds in China. This is a milestone in the history of financial cooperation between the two countries. This not only reflects the friendly and cooperative relations between China and Hungary, but also shows Hungary's high support for the internationalization of the RMB.

　　3. Connectivity

　　Although China and Hungary are separated by thousands of miles, the construction and improvement of transportation infrastructure has greatly shortened the distance between the two countries and promoted the continuous cooperation between the two countries in the fields of commerce, trade and logistics. The Hungarian-Serbian railway is a landmark project of the "Belt and Road" jointly built by China, Hungary and Serbia, and after the completion of this railway, it will further strengthen Hungary's position as a transportation hub in Central and Eastern Europe. The China-Europe Railway Express plays a role as a transport link between China and Europe, as well as the countries and regions that jointly build the "Belt and Road". Hungary is an important gateway for China-Europe freight trains to enter the EU. Through the China-Europe Express, Chinese and Hungarian products can be effectively exchanged, and more and more enterprises and businessmen can embrace new business opportunities and benefit from them. In addition, the opening of direct flights between Hungary and China from Xi'an, Guangzhou and Budapest this summer, following Beijing, Shanghai, Chongqing and Ningbo, will further boost economic relations between the two countries and help make Hungary the absolute leader in passenger transport in Central Europe.

　　4. Culture and education

　　Under the framework of the Belt and Road Initiative, exchanges and cooperation between China and Hungary in cultural and educational undertakings have flourished. At present, Hungary has opened five Confucius Institutes and opened the first public full-time school in Central and Eastern Europe to teach both Chinese and the Chinese language. A number of Chinese universities offer Hungarian language majors and actively cooperate with Hungarian universities. The two countries have set up cultural centers for each other, and have held many activities to promote music, film, fine arts, and literature of the two countries. High-level and wide-ranging cultural exchanges between China and Hungary have consolidated the public opinion foundation for the construction of the "Belt and Road", promoted exchanges and mutual learning between the two civilizations, and provided strong support for the strengthening of cooperation between the two countries.

　　In the future, China and Hungary will take the all-weather comprehensive strategic partnership in the new era as a new starting point and make steady progress on the "golden route" opened up by China and Hungary. The development of China-Hungary relations will lead China-CEEC cooperation to develop on a larger scale, in a wider range of fields and at a higher level, which will help China-EU relations enhance political mutual trust, eliminate trade barriers, and strengthen people-to-people and cultural exchanges. In particular, in the second half of this year, Hungary will take over the EU presidency. The development of China-Hungary relations from a high starting point is bound to have a positive, long-term and strategic impact on the first year of the third decade of the China-EU comprehensive strategic partnership.

　　(Author's Affiliation: College of Europe, Xi'an University of Foreign Chinese)

Source: China Social Science Network Author: Li Siyu