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Dragon parade in China.

Two Suns in the Sky: Hungary’s Divergence with the West on China

‘In fairness, to say that Washington, Brussels, and Budapest have some pre-existing policy disagreements is a laughable understatement. Nonetheless, the question remains: Why is Hungary growing closer to China as the West grows further away? The short answer is: it’s complicated.’

Viktor Orbán looks at Biden as the US President extends his hand to him before the group photo at the NATO Summit in Vilnius on 11 July 2023.

Choosing Between the US and China

‘Could Biden’s token [of shaking hands only with Orbán when arriving for the NATO group photo in Vilnius], as some experts suspect, have been an invitation to the Hungarian government to hop on board the US geopolitical bandwagon and forget the Chinese and Russian ones?’

The Risk in Not ‘De-Risking’ with China

‘There is also a way to deal with the world’s largest economy, for the US Dollar (USD) is not going to decline anytime soon. Those who claim that the USD is in decline often argue that for centuries, reserve currencies have risen and fallen in tandem with their home economies. As the US’ share of the global economy diminishes, economists argue, so too will the USD and its global hegemony. A fascinating yet hardly conclusive argument since there has never been a dominant global reserve currency prior to the USD. Quite the contrary, the USD is the only currency ever to have played such a pivotal role in international commerce.’

Szijjártó: The EU Will Lose Out if it Views China as a Rival

‘If the European Union views China as a rival, it will lose out. It has become evident in recent years that China has a competitive advantage in many areas of the economy,’ the minister declared. He emphasised that if the EU wants to benefit from its relationship with China, it should focus on cooperation based on mutual trust, respect, and benefits rather than rivalry.

China’s Decreasing Influence in Central and Eastern Europe

Cooperation between China and the Central and Eastern European countries (CEE) was established in 2012. While at its peak, the initiative comprised 17 CEE states, that number has shrunk to 14, as a result of disillusionment with Beijing over its silence on the Russian aggression against Ukraine, as well as its unkept investment promises.