HUNGARY — Viktor Orban was removed as Hungary's prime minister following his party's defeat in a recent election. His departure ends more than a decade in which Hungary used its European Union membership and the bloc's unanimity requirement on key foreign policy decisions to dilute collective EU action on China.

During Orban's tenure, Hungary blocked or softened EU statements critical of China on multiple occasions, including those related to Hong Kong and human rights concerns. Hungary also resisted efforts to impose anti-dumping tariffs on Chinese electric vehicles. In recent years, the European Commission has framed China as a "systemic rival" alongside its roles as a partner and economic competitor.

Hungary held the rotating presidency of the Council of the EU from July to December 2024. It was the first European country to join the Belt and Road Initiative, and under Orban's government became a key site for Chinese manufacturing and infrastructure projects. China leveraged Hungary's EU membership and central European location as a gateway for Chinese products to enter the EU market.

Chinese investment in Hungary has flowed into battery production, electric vehicles, and transport links. Under the Belt and Road Initiative, those projects have created more than 20,000 jobs. China is Hungary's largest trading partner outside Europe and its leading source of foreign direct investment.

Chinese President Xi Jinping visited Hungary in May 2024, where Orban welcomed him. The two countries signed 18 bilateral cooperation agreements during the visit and elevated their relationship to an "all-weather comprehensive strategic partnership," a designation infrequently used in Chinese diplomacy.

In December 2024, Chinese automaker BYD announced plans to build a new electric vehicle production base in Szeged, in southeastern Hungary. The planned facility will be the first passenger car factory established by a Chinese company within the EU.

Beijing has sought stable economic ties with the EU as a whole, positioning itself as both a partner and an indispensable market, while cultivating bilateral relationships with select EU member states that deviate from the Brussels consensus. China's long-term strategy toward Europe is to prevent coalition formation by cultivating divisions among member states, an approach described as a "divide and conquer" strategy.