China, Hungary set to boost bilateral relations

Premier's trip 'shows country's determination' to better ties

China is determined to deepen relations with Hungary by boosting trade and mutual investment as well as expanding cooperation in infrastructure construction and the financial sector, says Chinese Ambassador to Hungary Gao Jian.

Gao says Premier Wen Jiabao's visit on June 24 and June 25 will once again show China's determination by signing cooperation agreements and exchanging ideas with the leaders of Hungary, which is considered the gateway to Central and Eastern Europe.

Apart from meeting leaders, Wen is also expected to meet Budapest residents and college students.

Gao says Premier Wen's visit will bring bilateral relations to a new level after the two sides developed solid ties in the economic, education, culture, health, sports and tourism sectors during the last decade.

"Hungary has already become an important trade and economic partner in Central and Eastern Europe," Gao says.

She says the Bank of China has opened its first branch in Budapest and Hainan Airlines has started a flight between Beijing and Budapest. The first government-sponsored bilingual school (Chinese and Hungarian) is also seven years old. More Chinese are heading to Hungary to study and travel.

"As ambassador, I am quite happy to see these new developments, but I am quite concerned about the new challenges in international arena," Gao says.

She says the challenges include regional conflicts, the financial and debt crisis and climate change.

"Both China and Hungary should consider further deepening cooperation and becoming well prepared to face the challenges."

China has already unveiled its 12th Five-Year Plan (2011-2015) to improve the livelihood of people, protect the environment and realize sustainable development. The Hungarian government is also aiming to define its own strategic goals and putting economic development high on its agenda. As such, both sides are expected to expand cooperation in the trade, investment, infrastructure and financial sectors.

Gao forecasts that bilateral trade volume may reach $10 billion (7 billion euros), surpassing the $8.72 billion (6.1 billion euros) reached last year.

From January to April this year, bilateral trade also reaped $2.97 billion (2.1 billion euros), gaining growth of 16.1 percent year-on-year. China's exports to Hungary increased by 21 percent year-on-year, reaching $2.19 billion (1.5 billion euros) during the first four months. Exports from Hungary to China also grew by 4.5 percent, achieving $780 million (605 million euros) during the four months.

"I hope China makes more moves to attract Hungary's exports and narrow the trade deficit," says Bela Glattfelder, member of the European Parliament from Hungary.

For example, he says China should boost food imports from Hungary.

China has already made significant efforts to increase imports from Hungary, a country with about 10 million people.

Last year, China imported Hungarian goods worth $2.2 billion (1.5 billion euros), up 49.9 percent compared with 2009. Hungary has also become China's biggest importer in Central and Eastern Europe. Analysts say the trend may continue as China has already decided to double its import volume during the 2011-2015 period.

Gao also says mutual investment has been developing in a stable way. China's investment in Hungary has reached $2.5 billion (1.7 billion euros), creating more than 10,000 jobs in the trade, finance, aerospace, chemicals, logistics, real estate, consulting, telecommunication and electronics sectors.

Glattfelder says he hopes China can be more actively involved in Hungary's real estate sector and infrastructure as well as in renewable energy, especially in solar power.