Hungary’s foreign policy operates along two themes: national sovereignty and strategic alliances. Under Prime Minister Viktor Orban, Hungary has cultivated a pragmatic relationship with China, leveraging economic opportunities through the Belt and Road Initiative.
Budapest’s relationship with Beijing may alter its foreign policy framework as Beijing pressurises Hungary on many fronts: first the EU and second US-China relations.
Economic Ties State and Impact
Hungary’s relationship with China is a critical component of its foreign policy. Since joining China’s BRI in 2014, Hungary has become one of the few EU countries to embrace Chinese infrastructure projects. However, the BRI puts the country at odds with Western allies who are concerned about China’s geopolitical ambitions.
U.S. Concerns: Beijing in Europe
The U.S. has expressed deep concerns about China’s growing influence in Europe, mainly through the BRI. During Trump’s presidential term, former CIA director John Ratcliffe was outspoken about the threat that Chinese investors pose. It was stated that Chinese firms participating in BRI undertakings could engage in espionage, which is part of China’s long-term goal of undermining U.S. interests. In a 2020 Senate hearing, Ratcliffe called the BRI an “economic” and “security threat”, arguing that its contracts include provisions for intelligence gathering.
The Trump administration’s stance on China contrasts with Budapest’s position on Beijing concerning the economy. Hungary’s continued engagement with China may complicate its relationship with the West as US-China relations remain tense.
Navigating Ideals and Interests
This interpretation of Orban’s so-called “principled realism” attempts to combine Hungary’s interests with some adulation for the moral principles of the religion. Either way, Hungary aligns itself with the U.S. or China yet recent economic overtures with Beijing make Budapet’s position increasingly untenable with the White House.
Hungary’s foreign policy is at the crossroads. Hungary has to chart a course that justifies continued economic ties with China whilst maintaining a strategic commitment to the West. Otherwise, Budapest will find itself on a collision course with the West.
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