International Social Science Journal (Chinese Edition)

No.1, 2025

 

 

Heinrich Kreft

 

Hungary has become a key destination for foreign investment in Central and Eastern Europe, driven by its strategic location, investment-friendly policies, and labor advantages. Germany has long been Hungary’s largest foreign investor, with a strong presence in the automotive, electronics, and chemical industries. German investment has played a crucial role in Hungary’s economic transformation and industrial development. In recent years, Chinese investment in Hungary has surged, particularly under the Belt and Road Initiative, focusing on sectors such as electric vehicles and infrastructure. While German investments are rooted in long-term economic cooperation and supply chain integration, Chinese investments are more strategic, targeting emerging industries. Both countries’ investments have significantly contributed to Hungary’s economic growth but also present challenges for its economic policies and geopolitical positioning within the EU. To ensure sustainable development, Hungary must strike a balance between economic interests and EU regulations while maximizing the benefits of investments from both Germany and China.