Hungary Embraces Chinese Tech Investment Despite Local Opposition
Hungary’s strategic alignment with Chinese tech investment is sparking both economic growth and local resistance as the country welcomes substantial partnerships in the electric vehicle (EV) sector.
In a bold move, Hungary’s Foreign Minister Peter Szijjarto praised China’s dominance in global lithium-ion battery manufacturing during his visit to Beijing last October, signalling Hungary’s intention to bolster its position in the industry. With China holding a staggering 79% share of the lithium-ion battery market, Hungary aims to strengthen its role, currently at 4%.
Under the leadership of Prime Minister Viktor Orban, Hungary has actively pursued economic ties with China and South Korea, focusing particularly on EVs. This initiative has led to a surge in Chinese investment, making China the single largest investor in Hungary as of 2023.
The landscape of eastern Hungary is transforming rapidly with the establishment of several Chinese battery factories, such as CATL, SemCorp, and Eve Energy. These developments underscore Hungary’s strategic location in Europe and its attractiveness to major players in the automotive industry.
However, amidst this economic boom, concerns are rising regarding environmental impact and labour practices. Environmental protests against the construction of factories have escalated, and critics worry about water scarcity and the exploitation of cheap labour.
Despite these challenges, the Hungarian government remains committed to attracting investment while emphasizing the importance of fostering domestic research and development collaborations with foreign companies.
As Hungary navigates its path toward becoming an electromobility superpower, it faces a delicate balance between economic growth and addressing the social and environmental consequences of rapid industrialization.
