The rise of China heralds a new era and will remain a dominant long-term trend in the global economy, Prime Minister Viktor Orban said at the opening of the first Asian Financial Cooperation Alliance (AFCA) summit meeting in Budapest on Tuesday.
In response to the new situation, Hungary’s government launched its “opening to the east” policy in 2010, Orban said. Ever since, Hungary has been “the first country to react to every move”: it was the first to welcome the presidential Belt and Road Initiative, and attend a meeting and sign an agreement about the scheme, he said.
Orban also said that even today, European leaders tend to fall into one of two categories in terms of what they see as the causes of the 2008 global economic crisis. There are those who say it was about economic cycles, which means “that things will eventually get back to how they were and nothing can be done about it”, Orban said. But Hungary falls into the other category that believes the crisis was a structural one and that Europe is in need of reforms in order to stay competitive, he added.
China’s economy is growing at a blistering pace, which will lead to enormous import demands and the country will eventually need to expand its production capacities abroad, Orban said. Hungary has a good starting position in the global competition to benefit from the opportunities that will arise from these developments, he said.
Hungary is the best-placed country in the central and eastern European region in the race to cooperate with China, Orban said, arguing that Hungary is the region’s top exporter to China as well as the top regional destination for Chinese investments. In addition, tax rates are low, economic policy is based on common sense rather than ideology, Hungary’s geographic location is favourable to China and the two countries mutually respect one another, Orban said.
Hungary and China have strengthened their cooperation in all fields, Prime Minister Viktor Orban said after talks with his Chinese counterpart Li Keqiang in Budapest on Tuesday. At a joint press briefing after the meeting, Orban said that all European countries wish to partake in China’s enormous development.
“We have agreed that central and eastern Europe has an enormous development potential, and that joint investment projects can propel economic growth well above 4 percent”,
– Orban said. As some of our joint projects exceed the financial capacities of both Hungary and the EU, Chinese funding is essential, he said.
Li said Chinese-Hungarian cooperation presented mutually beneficial development opportunities for both countries. Over the past years, cooperation between China and Hungary has been moving in the right direction, he said, adding that China wanted Hungary to become an even more important destination for its investors.
He said cooperation between China and central and eastern European countries was “remarkably good” and was in line with trends in globalisation. This is a form of regional cooperation that connects Europe and Asia, Li said.
The Chinese premier said the 16-plus-one summit was a success. This cooperation can strengthen relations between China and the CEE countries and counterbalance the disadvantages caused by differences arising from the different pace of development, he added. China and central and eastern Europe can complement each other well in economic terms, he said.
Farm minister signs agreement allowing Hungarian maize exports to China
Hungarian minister of agriculture Sandor Fazekas has signed an agreement with the head of China’s Bureau of Import and Export Food Safety (AQSIQ), allowing exports of Hungarian maize to China, the farm ministry said on Tuesday. AQSIQ Minister Zhi Shuping also handed over a list of questions concerning the licensing of cherry exports. He also pledged to accelerate the assessment process related to products once affected by bird flu. During his talks with Shuping, Fazekas noted that Hungary’s farm exports to China have increased tenfold over the past five years. The government wants to further expand the range of Hungarian export products to China, he added.
CIG Pannonia, China Re sign MoU
The general insurance unit of CIG Pannonia Life Insurance, listed on the Budapest Stock Exchange, has signed a memorandum of understanding on business cooperation with China Reinsurance (Group) Corporation, CIG Pannonia said in a disclosure on Tuesday. The MoU was signed by China Re chairman Yuan Linjiang and CIG Pannonia First Hungarian General Insurance’s chairman and CEO, Gabriella Kadar and Zoltan Busa, respectively.
In the framework of the cooperation, the sides aim to jointly develop the serving of the insurance and reinsurance needs of big Chinese-owned companies and Chinese investments in Hungary, CIG Pannonia said. CIG Pannonia shares traded at 327 forints (EUR 1.05), up 4.8 percent, at 2:31 in the afternoon on Tuesday.
Source and photo: MTI