Hungary has become a strategic production base that might help Chinese firms mitigate the impact of EU tariffs on their electric vehicles. Consequently, CATL, China's largest electric vehicle battery manufacturer, invested $6 billion in Debrecen. BYD relocated its European headquarters from the Netherlands to Hungary. Huawei established its European Supply Hub in Pécs in 2009 and an R&D center in Budapest in 2020.
The Sino-Hungarian partnership is also shaped by Orbán's "Eastern Opening" policy, often described as a polyalignment strategy, as Hungary balances between its traditional Western ally, the US, and China, its strategic economic partner and a rival of Washington. While the broader EU maintains a cautious stance toward Beijing, Hungary asserts its independence in this matter.
Sino-Hungarian Relations: Economic Pragmatism and Veto Power
“Hungary does not see China as a risk or a threat, but rather as a state with which we can gain many benefits through cooperation.”
— Péter Szijjártó, Hungarian Foreign Minister
In the political landscape, Hungary supports Beijing's position on Taiwan (the "One China" policy) and its peace plan for the Russia-Ukraine conflict. Hungary has used its veto power in the EU to defend China's stance. Budapest prevented the EU from joining a condemnation of China's treatment of detained attorneys in 2017. In 2021, it blocked an EU statement regarding the democratic crackdown in Hong Kong.
In 2024, Hungary blocked NATO from labeling China a "systemic challenge", preventing the alliance from becoming an anti-China bloc.
US-Hungarian Relations: Strategic Interests and Shared Values
The US views Hungary as an important European trade and investment partner. The year 2025 saw unprecedented US investments in Hungary, totaling approximately €494 million (roughly $584 million), focused on research and development and advanced manufacturing. The US is the third-largest investor in Hungary, with nearly 1,400 American companies operating in the country. In February 2026, the US and Hungary signed a Memorandum of Understanding on Nuclear Energy.
For Orbán, this represents a diplomatic and economic win ahead of parliamentary elections as it strengthens Hungary's energy diversification. For Trump, the deal encourages Hungary to shift away from Russian fuel toward American alternatives.
€494M
US investment in Hungary
2025 — Record year
1,400+
American companies
Operating in Hungary
#3
Largest investor
US in Hungary
In February 2026, Secretary of State Marco Rubio affirmed Trump's commitment to Orbán's success. Orbán highlighted that bilateral relations were in a "new golden age." These economic achievements are based on a strong political foundation and personal rapport.
“Modern Hungary is not just a model for conservative statecraft, but the model — everyone can and should learn from it.”
— Kevin Roberts, President, The Heritage Foundation
The US sees Hungary as a close and strategic ally because Orbán's government maintains a consistent policy aligned with Trump's views. Both governments base their relationship not just on personal friendship but also on shared values, honesty, mutual respect for national interests, and practical cooperation.
Political Risk Assessment: What If Orbán Loses?
Hungary's current foreign policy orientation is associated with Orbán's personal agenda. However, for the first time in 16 years, Orbán faces the possibility of losing power as Tisza, the opposition party led by Péter Magyar, rapidly gains support. If the opposition wins, it could mark a turning point for both China and the US.
Impact on China
- China might lose a key economic and political ally in Europe
- Hungary would likely exercise its veto power less frequently on China-related matters
- New government might tighten scrutiny of Chinese investment
- Possible reconsideration of BRI participation
- Deep economic ties make abrupt rupture unlikely — pragmatism would prevail
Impact on the United States
- Washington could lose a uniquely aligned conservative leader inside the EU
- The ideological bridge between the US and Europe might weaken
- A more pro-EU Hungary might strengthen EU cohesion on China and Ukraine
- Reduced internal friction inside the EU and NATO
- US strategic interests not necessarily weakened — political climate would change
Conclusion
Hungary under Viktor Orbán demonstrates how a state can balance between rivals to maximize economic and political gains. For China, Hungary is a gateway into the EU and an advocate for its interests. For the US, Hungary represents not only a strategic economic ally but also a reflection of Trump's personal friendship with a European leader.
If Orbán were to lose power, Beijing and Washington would have to face a revised Hungarian foreign policy.
“The question is not whether Hungary chooses East or West, but whether its balancing strategy can be sustained beyond Orbán's leadership.”
Tags: Hungary · Geopolitics · EU Policy · Viktor Orbán · China · US Foreign Policy