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For the second year running, Hungary has been the number one destination for Chinese investment in the EU-UK region. Four of the top ten Chinese investments are in Hungary, including BYD’s car plant in Szeged and CATL’s battery factory in Debrecen.
Last year, Hungary continued to receive the largest share of Chinese working capital to Europe, according to a joint report by the Hungarian Investment Promotion Agency (HIPA), the Rhodium Group, and the Mercator Institute for China Studies (Merics).
Last year, Hungary came in first with a 31% share, while the traditionally dominant “big three” of Germany-France-UK accounted for only 20% of Chinese investment.
Total FDI into the region from China amounted to €10 billion in 2024, an increase of 47% from a year earlier and the first increase since 2016.
As in 2023, greenfield investment accounted for the bulk of Chinese projects in the region in 2024, with the automotive sector receiving the most capital, and mainly in the electric vehicle (EV) sector.
In this dimension, the importance of Hungary is even more evident, with 62% of Chinese EV investment projects going to Hungary last year, a further significant increase from 57% a year earlier.
The study also highlighted that four of the top ten Chinese investments in the region under review are in Hungary, including BYD’s car plant in Szeged and CATL’s battery plant in Debrecen. On the BYD project, it was added that the company, which is building its first European car plant in Hungary, has already held several supplier conferences attended by “hundreds of potential partners.”
The Rhodium Group research institute and Merics added that
the boom in Chinese investment in the EU/UK region could continue this year.
HIPA CEO István Joó pointed out that BYD is not only building its first European car plant in Hungary, but has also chosen the country as the location for its European business center and R&D base, helping the entire economy to move towards high value-added activities.
“We are grateful to our partners and honored that they have chosen Hungary,” said the Government Commissioner.
Via MTI, Featured photo via Hungary Today
