IRIA News

Chinese President Xi Jinping arrived in Hungary, marking the third and final leg of his European tour. His five-day long tri-national trip to Europe began in France on Monday, with a brief stopover in Serbia before he arrived in Budapest, where he plans to stay until May 10.

This visit underscores Xi’s commitment to fostering the 16+1 group, a Chinese diplomatic initiative involving former communist European nations that are actively investing in Beijing’s Belt and Road Initiative (BRI). Both Serbia and Hungary are members of the BRI initiative.

During his first stop in Paris, Xi held meetings with French President Emmanuel Macron and EU Commission chief Ursula von der Leyen to discuss trade issues and geopolitical concerns.

Xi Jinping has spent a major part of his Euro trip in the continent’s eastern half, a region that Beijing has used as a foothold for its expanding economic ambitions in Europe. This is the first time that the Chinese leader has visited Eastern Europe since a trip to the Czech Republic in 2016.

Xi’s visit to Hungary

Chinese President Xi Jinping’s visit to Hungary coincides with the 75th anniversary of China-Hungary diplomatic ties. On May 9, Chinese President Xi Jinping and his wife Peng Liyuan arrived in Budapest and attended a welcome ceremony jointly hosted by Hungarian President Tamas Sulyok and Prime Minister Viktor Orban.

During the talks held at the Sandor Palace in Budapest, Xi Jinping and Tamas Sulyok agreed to strengthen friendship and cooperation in diverse fields to bolster the China-Hungary relationship to higher levels.

Hungary maintains strong economic connections with China. In 2023, Budapest secured $11.5 billion in Chinese investments, with a significant portion directed towards electric vehicles. While the European Union has cautioned against Chinese dominance in this crucial sector, Hungary has embraced Chinese assistance.

In December last year, Chinese automaker BYD unveiled plans to construct an assembly plant in Hungary, marking its inaugural electric vehicle production site in Europe. Hungarian Prime Minister Viktor Orban aims to unveil further investment prospects with Great Wall Motor, another Chinese-owned electric vehicle company, during Xi’s ongoing visit this week.

Hungary is a unique case among all European nations. Despite being a part of the EU and the NATO alliance, Budapest has a propensity to maintain strong diplomatic and trade engagements with non-EU and non-NATO autocratic regimes like China and Russia. Hungarian leadership plays a delicate balancing act between regional alliances and economic partnerships. Hungary was the first EU member to join BRI in 2015, making it an important trade and transport gateway for Beijing into Europe.

Xi’s visit to Serbia

In Serbia, the Chinese President received a grand welcome as Serbian President Aleksandar Vucic escorted him to the platform of the Palace of Serbia. In front of the Palace, approximately 15,000 Serbian people waved flags of China and Serbia to welcome President Xi, who waved back, prompting cheers from the crowd.

Pекао сам председнику Сију да ће, као лидер и председник велике силе, свуда у свету наићи на поштовање, али на такво поштовање и на такву љубав нигде неће наићи као овде, у нашој Србији. pic.twitter.com/boH9rOEYw0

— Александар Вучић (@avucic) May 8, 2024

During his meeting with the Chinese leader, Aleksandar Vucic highlighted the vast opportunities for learning from China, describing the bilateral relationship as a strong and enduring friendship. Beijing holds the position of being Belgrade’s primary foreign investor.

“It is a strategic choice made by both sides to build a China-Serbia community with a shared future in the new era. Its goal is to realize the aspiration of the two people for a better life. Its foundation and driving force come from the firm support and extensive participation of the two peoples,” Xi told reporters during a joint press conference with Vucic. 

According to Serbia’s Infrastructure and Energy Ministry, Chinese investment has approached nearly $20 billion this year. Additionally, the two countries unveiled a fresh free trade agreement during Wednesday’s discussions. Effective from July, the agreement targets the elimination of tariffs on approximately 95 percent of Serbia’s exports to China within the next five to ten years.

During the latest visit of the Chinese president, the two countries signed several agreements on Belt and Road cooperation, green development, digital economy, e-commerce, infrastructure, economic and technical cooperation, information and communication, and agri-food.