Visit Our Sponsors |
A European “de-risking” of supply chains from China would be devastating for the bloc’s economy, a senior Hungarian minister warned, in comments highlighting the divisive nature of the policy.
“Political leaders in Europe are not too much interested in the interconnectivity between Europe and China,” Hungary’s Foreign Minister, Peter Szijjarto, said June 27. “They are interested in so-called decoupling or de-risking. Which, to be honest, according to our understanding, would be [economic] suicide.”
Concerns about economic barriers between China and the West have been at the forefront of the World Economic Forum’s Annual Meeting of the New Champions in Tianjin, China from June 27 to June 29. Szijjarto spoke on a panel at the event, which is often described as the “Summer Davos.”
Read more: Europeans Reluctant to De-Risk from China, Survey Says
Hours before Szijjarto’s remarks, China’s Premier Li Qiang said that governments attempting to politicize their economies would only fragment the world and cause confrontation. Li called for countries to “work together to keep global industrial and supply chains stable, smooth and secure.”
Hungary is one of the EU’s most pro-Chinese governments and has rejected international pressure to reduce economic links with China. It has maintained its participation in the Belt and Road Initiative — China’s global infrastructure project — as well as with telecommunication companies including Huawei Technologies.
Over the last 12 months, Hungary has emerged as a major site in Europe for new Chinese investments, including a battery factory worth around 7.3 billion euros ($8 billion), which will be the largest single investment into the country ever. During May 2023, Szijjarto flagged other investments from Chinese firms into the car sector worth 3 billion euros.
Szijjarto also acknowledged Hungary’s reliance on Russia for its oil and gas purchases June 27, which he called a “matter of reality.” The nation’s Prime Minister Viktor Orban has been a vocal critic of EU sanctions against Russia and has maintained close economic links with Moscow since the invasion of Ukraine.
Read more: China to Host Country’s First International Supply Chain Exhibition
Hungary’s relationship with Russia is pragmatic, Szijjarto said. When asked after the panel about the recent attempted armed uprising against President Vladimir Putin, he said the incident would not change their nations’ ties, adding that they must be maintained in order to ensure Hungary’s energy supplies.
Szijjarto said he has been in touch with Russian Foreign Minister Sergei Lavrov and Deputy Prime Minister Denis Manturov, along with the government in Belarus.
“Whatever happens in Russia regarding internal security has an impact on central Europe, and we have to be prepared,” he added.
RELATED CONTENT
RELATED VIDEOS
Timely, incisive articles delivered directly to your inbox.