[Text/Observer Network Liu Chenghui] Faced with US pressure to reduce economic ties with China, Hungary's Minister of Economy, Marton Nagy, emphasized to reporters on April 28 that Hungary will not reduce its economic ties with China. He stated that Hungary's stance is very pragmatic and that the investment potential from the United States cannot be compared with China.

Bloomberg described this as the clearest signal yet from Hungary indicating that the government led by Prime Minister Orban will not bow to US pressure to distance itself from China.

Nagy told reporters in the capital, Budapest, that Hungary has not seen any signs of US investment replacing Chinese investment.

The report indicated that one of the obstacles is that the US has not yet signed a new tax agreement with Hungary. The Biden administration terminated the 1979 tax agreement with Hungary during his term, citing Hungary's reduction of its corporate tax rate to 9%, while the US federal corporate tax rate is 21%. The original tax agreement would have unilaterally favored Hungary.

"We do not see US investment potential that can match the scale of Chinese investments," Nagy said. "Our position is very pragmatic."

Hungary's Minister of Economy, Marton Nagy, on social media.

A few days ago, Donald Trump Jr., the eldest son of former President Trump, gave a speech in Hungary, inciting Hungary and other Central and Eastern European countries to choose the US over China as their economic partner. He also hyped up that the challenges brought by China to the region are greater than those posed by Russia.

"I understand threats from many places, not just from Russia." Then he hyped up Chinese investments as so-called "threats" and urged Hungary to strengthen cooperation with the US to "reduce risks."

This is not the first time the US has smeared relations between China and Central and Eastern European countries. On April 15, Robert Palladino, the US chargé d'affaires in Hungary, similarly stated at a meeting in Budapest: "President Trump was very clear - China poses a strategic challenge to the US and our allies, which requires vigilance, transparency, and unity."

However, Bloomberg noted that his comments might upset countries like Hungary, as these countries have opened their doors to Chinese investments.

Hungary has attracted billions of dollars in investments from China, including in the battery and electric vehicle sectors. A Chinese automaker plans to build a factory in southern Hungary. Hungary and Serbia are also constructing the freight line from Budapest to Belgrade as part of China's Belt and Road Initiative.

Hungary is the first European country to sign a cooperation document with China under the Belt and Road Initiative. In recent years, as the Belt and Road Initiative aligns deeply with Hungary's "Eastern Opening" strategy, China and Hungary have continuously deepened practical cooperation in various fields and created more new highlights of cooperation.

Last week, Foreign Minister Szijjarto said that Hungary has absorbed 44% of China's European investments in recent years. Orban actively attracts foreign battery and electric vehicle producers to invest in the country.

On April 14, the website of the Ministry of Foreign Affairs reported that Ambassador Gong Tao of China to Hungary stated in an interview with the Mandina News Network that Hungary is China's largest investment destination and important trade partner in Central and Eastern Europe.

On April 3, both sides held the 21st meeting of the Sino-Hungarian Economic Joint Committee in Budapest. Both parties will further optimize bilateral trade structures, promote cooperation in information technology, green low-carbon, artificial intelligence, medical health, and other fields, ensure the construction and operation of key investment projects, and jointly promote the upgrading of Sino-Hungarian economic and trade cooperation. China welcomes Hungary's active participation in important exhibitions such as the China International Investment and Trade Fair, the China International Import Expo, the China Import and Export Commodities Fair, and the China-Central and Eastern European Countries Expo.

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Original source: https://www.toutiao.com/article/7498363401136128563/

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