Unlock Editor’s Digest for free
Roula Khalaf, editor of the FT, picks her favorite stories in this weekly newsletter.
China’s President Xi Jinping has praised Hungarian Prime Minister Viktor Orbán’s government for pursuing an “independent” foreign policy and “defying” great power politics on a trip to Europe that analysts say are aimed at exploiting divisions in the EU and NATO.
Xi, who is scheduled to arrive in Hungary from Serbia this evening at the end of his five-day European trip, called on Budapest to “lead” relations between Central and Eastern European countries with China in a signed letter published in the Hungarian media group Magyar. Nemzet.
“We have endured hardships together and resisted power politics together amid volatile international relations,” Xi said in an English version of the article. “We have found our own way so that sovereign states can independently conduct friendly exchanges with other countries.”
The comments appeared to be a nod to how Orbán, Europe’s longest-serving prime minister, has long defied pressure from Brussels, the United States and NATO, maintained friendly ties with Moscow and deepened business ties with China.
Xi told French President Emmanuel Macron on Monday at the start of his trip that the world must avoid a “new Cold War,” part of a campaign by Chinese politicians to persuade European governments to distance themselves from U.S. foreign policy, reportedly the aim is to curb their rise.
China considers Hungary one of its closest partners in Europe and has made generous investment promises to the country. One potential project currently being discussed is an electric vehicle plant for China’s Great Wall Motor, Chinese officials said, following investments from electric vehicle maker BYD and battery maker CATL.
According to official Chinese estimates, cumulative foreign direct investment from Chinese companies in Hungary could reach 30 billion euros by the end of this year.
“Our two countries must lead regional cooperation,” Xi said in his letter, adding that Hungary could help China deepen its ties with Central and Eastern European countries to ensure “stable” ties between Beijing and the bloc.
While Xi’s comments are likely to please the government in Budapest, they are unlikely to allay European concerns about Beijing’s priorities.
During his meeting with Macron, Xi did not give in to European complaints that oversupply and weak demand in China could threaten EU industry by dumping cheap products on the bloc’s markets.
The EU is also concerned about Xi’s close relationship with Russian President Vladimir Putin and China’s growing trade with Russia, which the bloc says has helped Moscow withstand Western sanctions since it launched its all-out invasion of Ukraine in 2022.
Xi’s visits to Hungary and Serbia – considered the most Russia-friendly countries in Europe – will do little to address these concerns, analysts said.
In October, Orbán became the first EU leader to meet Putin since the Russian president ordered the full-scale invasion of Ukraine.
The meeting took place in Beijing on the sidelines of the Belt and Road Forum, Xi’s flagship infrastructure investment initiative, which Orbán was the only European leader to attend.
In Serbia on Tuesday, Xi criticized NATO over the 1999 bombing of the Chinese embassy in Belgrade that killed three people, saying Chinese and Serbs should “never forget” the incident.