Page 101 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.78, # 2, 2021, pp. 89-104

The automobile industry is Hungary's pillar industry, accounting for 31 percent of
the manufacturing industry. There are more than 740 automobile and parts
manufacturers in Hungary, with 150000 employees. Ninety per cent of the industry's
output value is export-oriented. At present, 14 of the world's 20 largest first-class
auto suppliers are based in Hungary and production is expanding. The perfect local
supplier system, coupled with superior geographical location and rich human
resources, makes the Hungarian automobile industry very attractive.

China's high-speed rail technology and communications technology have a unique
competitive advantage. Based on the characteristics of China's large population and
low labor cost, China's new industrialization road will vigorously develop capital-
technology-intensive industries, develop, improve and upgrade labor-intensive
industries, and promote economic development.

In the wake of the financial crisis, both countries have experienced varying degrees
of impact. After 2010, with the development of “The Belt and Road”, two countries
th
economy gradually recovered. Hungarian exports to China in the SITC 7
maintained a growth rate of 10 per cent in 2008-2013, followed by a peak growth
rate of 27 %in recent years. The growth rate of China's exports to Hungary in the7th
remained basically at 5 per cent, while the 5th category grew more significantly,
reaching as high as 35% in 2017. In the process of gradually carrying out “The Belt
and Road”, the economic ties between China and Hungary have become deeper.
Moreover, the types of export commodities of the two countries are similar to each
other to some extent.

In terms of bilateral trade between China and Hungary, in 2020, all parties will
overcome difficulties and promote practical cooperation to buck the trend.
According to Chinese statistics, the bilateral trade volume between China and
Hungary in 2020 will reach 11.69 billion US dollars, a year-on-year increase of
14.4%, a record high. Among them, the export was 7.4 billion US dollars, a year-on-
year increase of 14.4%; the import was 4.28 billion US dollars, a year-on-year
increase of 14.3%. (Analysis of Hungary's trade in 2020) Hungary adheres to the
policy of "opening to the east" and works together with China's "Belt and Road"
initiative. Many Chinese-funded enterprises have invested their economic and trade
cooperation projects in Hungary, and investment drives trade development.

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