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New Chinese Investments Sustaining Economic Growth

MTI-Hungary Today 2023.06.28.

As two new Chinese corporate investments have been agreed on, the government’s goal is still the same: to ensure that Hungary remains the number one destination for Chinese companies in the region, Minister of Foreign Affairs and Trade Péter Szijjártó announced in Tianjin, China.

The Minister said that following talks with Chinese business leaders, new investments worth HUF 35 billion (EUR 94 million) will be made in Hungary, which could

significantly contribute to sustaining the country’s economic growth and create around 500 new jobs.

He noted that one of the companies will manufacture packaging products for the largest European beverage producers in eastern Hungary as part of a HUF 28 billion (EUR 76 million) investment. The project will provide about 300 new jobs and is therefore supported by the government, but the size of the contribution will only be disclosed after the European Commission’s approval.

The other company will set up a HUF 7 billion (EUR 19 million) plant in western Hungary to produce interior components for BMW’s all-electric platform cars in Debrecen (eastern Hungary). This will create around 200 new jobs.

The economic cooperation between Hungary and China is developing steadily; Chinese companies continue to see Hungary as an attractive investment destination, and our aim is to maintain our position as the number one investment destination for Chinese companies in Central Europe,”

Péter Szijjártó highlighted.

He stressed that investments by Chinese companies have played a major role in keeping Hungarian economy on a path of growth in recent times.

He also underlined that after 2020, China will continue to bring the most investment to Hungary this year, representing the highest available technological standards and help protect jobs.

Moreover, these investments are coming to Hungary mainly in the electric car sector, which we know is the industry of the future, “

he emphasized.

Szijjártó then warned that the automotive transition is now irreversible and will determine the development of the European and global economy in the coming period. “Hungary is well placed in this race,” he said.

The minister also pointed out that a large part of Chinese investment in the automotive sector was coming to Hungary because of the presence of German vehicle manufacturers with significant capacities.

“It is interesting to see that while in the political arena German politicians often talk about the separation of the European and Chinese economies, in reality (..) German and Chinese companies are cooperating very closely,” he said.

Finally, the Minister added that

Chinese companies are happy with the conditions in which they operate and invest in Hungary,

they are happy that they pay the lowest taxes in Europe, they are happy with the infrastructure conditions and they have a high regard for the Hungarian workforce.”

Further Chinese Automotive Investments on the Way
Further Chinese Automotive Investments on the Way

Four out of five major Chinese companies will invest in Hungary in the electric car sector, thus serving German car manufacturers already present in the country.Continue reading

Via MTI, Featured Image via Facebook/Szijjártó Péter

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