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Europe's pro-China iron triangle, China's grand strategy, Hungary is the core

author:Yuehao narrated

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Europe's pro-China iron triangle, China's grand strategy, Hungary is the core

In China's foreign relations, the three countries that have good relations with China are France, Ethiopia, and Hungary. Ethiopia is a visa-free country for China. France, in a similar way to China's foreign policy, both advocate independence. In Hungary, the focus of our discussion today is the convergence of deeper values and national ideals.

Europe's pro-China iron triangle, China's grand strategy, Hungary is the core

So what are the factors in Sino-Hungarian relations that have led to such a good relationship between the two countries? In fact, the "16+1" cooperation platform and the "Belt and Road" initiative are two national strategies to promote cooperation.

Europe's pro-China iron triangle, China's grand strategy, Hungary is the core

Let's first briefly understand how the state-to-state relations between China and Hungary have developed historically. Both have the same ideology and both develop communism, so they entered the honeymoon period of establishing diplomatic relations at the very beginning. On October 6, 1949, the two countries formally established diplomatic relations to exchange cultural traditions and learn scientific knowledge.

Europe's pro-China iron triangle, China's grand strategy, Hungary is the core

Later, relations between our big brother "USSR" and our country deteriorated, which in turn affected continental diplomacy. During the turmoil, the two countries did not interact with each other, and all exchanges were severed. After 1978, relations between the two countries gradually broke the ice and began to repair.

He also took the initiative to study and study the economic development of Hungary, during which there were some small episodes. However, the main theme of the relations between the two countries has not changed much, and they have maintained long-term friendly and cooperative relations.

The "evidence" of the friendship between the two countries includes the opening of the Budapest branch of the Bank of China, the opening of the Hungarian-Chinese bilingual school and the Confucius Institute, the resumption of operation of the Hungarian Consulate in Shanghai, and the holding of the "Hungarian Cultural Season".

Europe's pro-China iron triangle, China's grand strategy, Hungary is the core

In order to reduce its dependence on Western countries, Hungary has implemented an "open to the east" policy and strengthened trade cooperation with India, China, Russia and other countries. In 2015, Hungary signed the Belt and Road Initiative with China, which is the first European country to start a Belt and Road cooperation strategy with the mainland.

In 2012, the 16+1 Cooperation Platform was established in Warsaw, Poland, with the aim of deepening relations between China and CEE countries. Of these 16 countries, 11 are members of the European Union and 14 are members of NATO. A common feature of these 16 European countries is that they all once belonged to the sphere of interests of the former Soviet Union.

Europe's pro-China iron triangle, China's grand strategy, Hungary is the core

In 2013, the Platform held a summit in Bucharest to implement its first infrastructure project, the renovation of the Budapest-Belgrade railway line. The railway line was renovated by Hungary, Serbia and China.

In this year, the President of the People's Republic of China delivered an important speech in Kazakhstan, emphasizing the importance of the ancient Silk Road, which connected the East and the West, Asia and Europe. The "Silk Road Economic Belt" initiative was proposed to form a comprehensive regional cooperation and the "21st Century Maritime Silk Road", which is the Belt and Road Initiative.

Europe's pro-China iron triangle, China's grand strategy, Hungary is the core

The Belt and Road Initiative has three routes and six economic corridors. The three routes are the one that connects China and Europe through Russia and Central Asia. Roads connecting the Middle East and China through Central Asia and connecting South Asia and Southeast Asia with China.

The six economic corridors are: China-Mongolia-Russia Economic Corridor, New Eurasian Land Bridge Economic Corridor, China-Central Asia-West Asia Economic Corridor, China-Pakistan Economic Corridor, Bangladesh-China-India-Myanmar Economic Corridor, and China-Indochina Peninsula Economic Corridor. The most important corridors for Hungary are the New Eurasian Land Bridge Economic Corridor and the China-Central Asia-West Asia Economic Corridor.

Europe's pro-China iron triangle, China's grand strategy, Hungary is the core

In the China-Central Asia-West Asia Economic Corridor, Hungary can use the Budapest-Belgrade railway line to participate in the transportation of goods in the Balkans. After the situation in Ukraine improves, it will be able to participate in the transportation of goods on the economic corridor of the new Eurasian land bridge. Goods arriving by rail can be further reached through Hungary to the most important economic centers of Western Europe. 

Europe's pro-China iron triangle, China's grand strategy, Hungary is the core

Due to its strategic location, Hungary occupies a special place in China's high-speed rail network. At present, freight trains from Xi'an, Chengdu, Changsha, Xiamen and Jinan to Budapest facilitate the transportation of goods between the two countries. By combining the possibilities of air and land transportation, Hungary can also become a logistics and distribution center for Chinese goods. 

In terms of exchanges between the two countries, close political relations can ensure the stability of cooperation between the two countries. In December 2014, after the second meeting of the Chinese and Hungarian prime ministers of the same year, they agreed to set up the China-Central and Eastern European Tourism Coordination Center in Budapest. Hungary is the first EU country to sign a Memorandum of Understanding (MOU) with China on the Belt and Road Initiative.

Europe's pro-China iron triangle, China's grand strategy, Hungary is the core

In 2021, within the framework of the "Health Silk Road" and "Mask Diplomacy", Hungary received masks, protective clothing and medicines from China. Hungary was the first EU country to buy a vaccine from China and the first to start using this vaccine for vaccination.

Among the Central and Eastern European countries with which the economy flows, Hungary remains the leader of China's outward FDI. In 2009, Huawei brought its European supply center to Hungary, from which it has since supplied to all of Europe, Russia, North Africa, and the Middle East, and established an R&D center. In 2016, Wanhua and Huawei signed a joint statement on the development of manufacturing systems, and Hungary became Huawei's largest logistics center abroad.

Europe's pro-China iron triangle, China's grand strategy, Hungary is the core

Bilateral trade grew steadily, reaching $10.8 billion in 2020. Among them, Hungary exported 200 million US dollars, and China imported 8.7 billion US dollars. There is a trade deficit of $6.7 billion between the two countries in favor of China.

To deepen financial cooperation, the People's Bank of China and the National Bank of Hungary signed a bilateral currency swap agreement of 10 billion yuan, which is valid for three years. The Export-Import Bank of China and the Export-Import Bank of Hungary signed a framework agreement on the extension of a loan of 300 million euros to support cooperation between Chinese and Hungarian enterprises in the fields of economy, trade, investment and other fields.

Europe's pro-China iron triangle, China's grand strategy, Hungary is the core

Bank of China Hungarian Branch successfully issued 500 million euro worth of Belt and Road bonds, and Hungary successfully obtained the qualification of RMB Overseas Institutional Investor on a pilot basis. Bank of China issued the first Chinese RMB and Hungarian Forint credit cards.

In 2017, Hungary joined the AIIB. Chinese financial institutions have offices in Hungary that can help businesses looking to invest in Hungary. 

In addition to the political and economic benefits, there are also cultural aspects. In October 2016, the Center for the Belt and Road Research was established at ELTE University, with the main objective of conducting scientific research related to the Silk Roads. The Confucius Institute at the University of Pécs is unique in the whole of Europe in that it is the only one that specializes in traditional Chinese medicine. The establishment of the Hungarian campus of Fudan University in China has also opened a channel for cultural exchanges between the two countries.

Europe's pro-China iron triangle, China's grand strategy, Hungary is the core

The introduction of scholarship programs for international students from the two countries, the establishment of Hungarian language departments, the holding of cultural activities, and the broadcast of Chinese programs have all promoted exchanges between the two countries.

Why is it so important for us to be friendly with Hungary? In fact, it is part of the country's long-term strategic plan, and I have talked about the benefits of the relationship between the two countries above. It should be emphasized here that the Belt and Road Initiative was proposed by the mainland, and the Hungarian Railway is a key project of cooperation between China and Central and Eastern European countries, and it is also the first project of the Belt and Road Initiative. As long as the beginning is good, other countries can rest assured that they will cooperate.

Europe's pro-China iron triangle, China's grand strategy, Hungary is the core

The strategic position of this railway is very important, and the success of this project has a direct impact on the status of the continent as a great power, so we must maintain a close and good cooperation with our partner country, Hungary. The railway runs south from Budapest, the capital of Hungary, to Serbia, Macedonia and Greece to the port of Piraeus on the Mediterranean.

Hungary's accession to the Belt and Road Initiative in 2015 also means that Hungary's current historical situation will change. The Central and Eastern European countries, surrounded by land on all sides, have so far been unable to afford their share of maritime trade. One of the goals of the Belt and Road Initiative is to move the center of trade from the sea to the mainland again, so that Hungary can also have a place in large-scale trade.

Europe's pro-China iron triangle, China's grand strategy, Hungary is the core

Hungary is also affected by two routes that run through the entire Eurasian continent: the China-Central Asia-West Asia Economic Corridor and the New Eurasian Land Bridge Economic Corridor. These two routes provide Hungary with the opportunity to participate in world trade. Goods arriving on the high-speed rail route can continue to Western European countries through logistics centers arriving in Hungary.

As a result, Hungary will become one of the centers of Chinese goods, and its role in the eyes of the New Silk Road and China will increase. Freight can also be faster by expanding and modernizing existing routes.

Europe's pro-China iron triangle, China's grand strategy, Hungary is the core

The modernization of the Budapest-Belgrade railway line is the first "One Belt, One Road" and 16+1 project in Europe to be built by China. The project can also serve as a benchmark for EU countries to experience China, encouraging them not to be afraid to participate in Belt and Road projects.

In recent years, the number of cultural cooperation between China and Hungary has also increased. Geographically, these two countries are located at different ends of the world. But thanks to the Belt and Road Initiative, the people of the two countries are getting to know the other half better. One way to do this is to establish cultural centers in the other country. Through their work, these institutions aim to bring people closer together. The common diplomatic aspirations of China and Hungary are fully compatible.

Europe's pro-China iron triangle, China's grand strategy, Hungary is the core

The Belt and Road Initiative and the Open East policy complement each other. The aim of the Chinese politicians is to be able to transfer the surplus and knowledge accumulated in China to foreign markets, and the goal of the Hungarian side is to diversify its relations and reduce its dependence on the European Union.

The friendly relations between the two countries have lasted for 72 years, and there will be more opportunities in the political, economic, educational, and cultural fields in the future.

Europe's pro-China iron triangle, China's grand strategy, Hungary is the core

Projects launched under the Belt and Road Initiative are important for both parties and will become a standard once completed. More joint projects are expected in the near future, which is a mutually beneficial cooperation between countries. The success of this cooperation will open the way for China to cooperate with other countries and promote the further completion of the Belt and Road Initiative

Resources

Joint Statement of the People's Republic of China and Hungary on the Establishment of an All-Weather Comprehensive Strategic Partnership for a New Era

Xinhua News Agency2024-05-10 Beijing

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