Chinese car giant, BYD, is building an electric car factory in Hungary. (AFP)
[Sianel Ariannol / Adroddiad Cynhwysfawr]On the occasion of Chinese President Xi Jinping’s visit to Europe, European media reports highlighted the fact that Xi Jinping and Chinese electric cars entering Hungary are tearing European unity apart.
On the great plains of Szeged, Hungary, land is being cleared to build a huge new building This is an electric vehicle factory provided by the Chinese automobile giant BYD The 300-hectare industrial park has an investment of 501 million euros and is expected to complete in 2025. .
Despite the WORLD’s pledge to promote green energy and economic growth, important questions remain unanswered and could become pawns in a larger geopolitical chess game. China has also been asked if it is using Hungary as a Trojan horse to weaken the EU? The Szeged factory is China’s second largest automotive investment in Hungary.
Xi Jinping will arrive in Budapest this month after visiting France and Serbia, and Hungary will take over the rotating presidency of the European Council in July.
Hungary is important to China. For Hungary, the car industry is the country’s economic engine, and generous subsidies and tax breaks attract powerful German and Chinese car manufacturers. Hungary is the first EU country to sign a contract with China as part of China’s Belt and Road infrastructure initiative. In 2023, China became the country’s largest single investor with 10.7 billion euros. Despite US pressure to ban Huawei, Hungary still has Huawei’s largest supply base outside of China.
Investing in electric vehicles is key. China Contemporary Amperex Technology Co, Ltd (CATL) is building a 7.3 billion euro electric vehicle battery factory in Debrecen, a city in southern Hungary. It plans to start production in 2025 and supply batteries to manufacturers such as BMW, Mercedes-Benz, and Stellantis. China watchers say another plant could be announced during Xi Jinping’s visit.
Investment in China is not free either. For the CATL plant, the Hungarian government spent almost 2 billion euros on infrastructure construction. The government has promised €122-125 million in infrastructure development for BYD in Szeged, as well as millions of euros in state aid. Although the details remain confidential, the projects will be for “road networks, utility networks and community services”.
China’s new electric car factory in Hungary is more than a simple car investment, as Beijing has pushed its electric car offensive into the heart of Europe.
To get a handle on the pulse of the economy with one hand, I subscribe to the Free Finance Youtube channel
No need to draw, no need to grab Now use the APP to read the news Guaranteed to win every day.
Already added as a friend, thanks
#Jinping #Chinese #electric #cars #drive #Hungary #tearing #Europe #Free #Finance
