Exploring the Barriers and Breakthrough Paths of China-Hungary Cooperation within the Framework of the European Union

Abstract

Hungary is the only EU member state in Central and Eastern Europe with a complete new energy power battery industry chain cluster. In China’s investment in Hungary, the proportion will reach 57% by 2025, making it the largest foreign investor in Hungary for three consecutive years. Its unique industrial and policy advantages promote cooperation between the two sides. The unified regulation of the European Union, internal differences in interests, geopolitical disturbances, and industrial adaptation gaps constrain China-Hungary economic, trade, technology, and cultural cooperation. The introduction of regulations related to foreign investment screening, carbon border regulation, foreign subsidies, and the change of direction by the new Hungarian government has increased the uncertainty of cooperation. Based on the good bilateral relations and complementary industries, this article analyzes the existing obstacles by combining the EU operating rules with the reality of China-Hungary cooperation. It proposes a path from the aspects of rule adaptation, strategic docking, industrial synergy, and risk prevention and control to promote the long-term development of bilateral cooperation and provide reference for China’s cooperation with other Central and Eastern European EU countries.