Hungary opens up to Chinese tech despite protests

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Debrecen, HungaryImage source, Getty Images

Image caption,

Debrecen successful eastbound Hungary is present location to aggregate caller factories

By Nick Thorpe

BBC News, Hungary

"We bash not mean to go the satellite leader," said Hungary's overseas curate successful Beijing past October, astir his country's ambitious plans for manufacturing Electric Vehicle batteries, "because the satellite person is China".

China has an astonishing 79% stock of the lithium-ion planetary artillery manufacturing capacity, up of the US connected 6%. Hungary is present 3rd with 4% and aims soon to overtake the Americans, explained Peter Szijjarto, during his sojourn to China.

With 36 factories already built, nether operation oregon planned, his words were nary idle boast.

Viktor Orban's Fidesz authorities has trumpeted its "opening to the East".

When it comes to maintaining beardown economical ties with Russia, Budapest draws sizeable criticism. More important successful economical presumption are the increasing ties with China and South Korea. Electric vehicles are the cornerstone of that push, and for erstwhile Hungary is attracting the envy of chap EU members, alternatively than their approbation.

By this summer, determination volition beryllium 17 flights a week betwixt Budapest and Chinese cities. In 2023, China became the azygous biggest capitalist successful Hungary with €10.7bn.

Looking southbound from the operation of the Reformed Great Church successful Debrecen, the coagulated grey gathering blocks of China's CATL mill agelong into the distance. The world's biggest artillery shaper has a large foothold successful eastbound Hungary.

Image caption,

Hungary is hoping to go the 2nd biggest supplier of lithium-ion planetary batteries successful the world

Until past twelvemonth sunflowers and oilseed rape painted the scenery greenish and yellow. Now the Chinese SemCorp separator foil mill and the Chinese EcoPro cathode works person sprung up too.

Go past the operation tract of Debrecen's new, all-electric BMW mill and you volition find different Chinese artillery maker, Eve Energy.

Meanwhile, bulldozers successful confederate Hungary are stripping the ungraded implicit a 300 hectare-site to hole it for a Chinese "gigafactory" for BYD electrical cars.

South Korean and Japanese factories person already started manufacturing batteries oregon artillery components here.

"Hungary is successful the centre of Europe and successful adjacent proximity to the biggest concern players successful the automotive industry," says Noemi Sidlo from CATL's Hungarian division.

It was an evident destination and the section and nationalist governments were keen to help, she explained.

Mr Orban's Fidesz authorities has bent implicit backwards to pull Chinese investment, promising CATL €800m successful taxation incentives and infrastructural enactment to clinch the woody - much than 10% of the €7.3bn investment.

Add to that Chinese concern successful a high-speed railway intended to link Central Europe to the ports of Thessaloniki and Piraeus and Budapest's enthusiasm for Chinese concern is adjacent clearer.

The feeling appears to beryllium mutual. When Chinese President Xi Jinping comes to Europe successful May, helium volition sojourn conscionable 3 countries - France, Serbia, and Hungary.

What could inactive spell incorrect for Viktor Orban's plans?

Rather a lot, accidental his critics. Environmental protests against the swathe of factories are growing, contempt near-silence successful the Fidesz-controlled media astir imaginable problems.

Image source, Getty Images

Image caption,

There person been protests successful Debrecen astir plans to unfastened much factories there

The politician of Debrecen, Laszlo Papp, has refused to speech to the BBC.

Repeated emails to the overseas ministry and the Hungarian Investment Promotion Agency person gone unanswered.

Opponents kick that determination is nary mode to situation the projects locally due to the fact that they person been granted "enhanced nationalist interest" status.

South of Debrecen lies the beauteous colony of Mikepercs which has go progressively dwarfed by operation sites.

"None of america mothers are against greenish cars," says section campaigner Eva Kozma, "but it is incredibly unfair they built specified an tremendous mill here, without asking the section people."

She points to biology issues caused by artillery factories elsewhere successful Hungary: "That's not a greenish aboriginal if everyone present gets cancer, conscionable due to the fact that successful different towns radical who are luckier than america tin flit astir successful their bully greenish cars."

Noemi Sidlo from CATL insists her fears are ungrounded.

Image caption,

Eva Kozma, a campaigner, says that the section assemblage should person been consulted astir the gathering of factories

Water proviso is besides a large headache successful Debrecen.

Situated connected the Great Hungarian plain, rainfall is successful decline, underground h2o supplies are depleted, and authorities plans person truthful acold travel to small to clasp much of the waters that travel done the Danube and Tisza rivers.

Hungary risks trading its presumption arsenic a h2o superpower, to go an electromobility superpower. Maps from the 19th Century amusement overmuch of the existent aboveground of the state covered successful water.

Another occupation is labour, successful a state wherever unemployment is beneath 5%.

CATL unsocial volition request 9,000 workers, but the Hungarian authorities rides to powerfulness successful predetermination aft predetermination connected a slogan of "keep migrants out".

The right-wing Our Homeland Movement precocious highlighted the increasing fig of Turkish workers successful Debrecen, gathering the BMW plant.

Another interest among critics is that inexpensive labour, inexpensive land, and generous authorities incentives volition crook Hungary into a "servant-state" of Chinese and South-East Asian companies.

The authorities acknowledges determination is simply a hazard that wages volition beryllium kept debased and home probe and improvement volition beryllium affected.

"We person to person the investors, not lone to bring accumulation here, but besides research," Balazs Orban, governmental manager of the Prime Minister's Office told the BBC.

"How we merge their probe with the Hungarian companies. This is the biggest situation for the upcoming 10 years."

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