Page 96 - Azerbaijan State University of Economics

Yang Zhifang, Zhang Jieqian, Rudnák Ildikó: China-Hungary Trade Relations
Under The Belt And Road Initiative

Technology

China has considerable advantages in infrastructure construction. Infrastructure is
critical to development and can fully unleash the creativity of enterprises. It includes
not only railways and highways, but also oil and gas pipelines, power channels,
airports, water supply systems, bridges, communications and other infrastructure.. On
the one hand, it can solve the problem of domestic overcapacity to a certain extent; on
the other hand, it can promote local economic development and employment.
China has high-speed railway technology. Trains travel faster than 200km/h. The
cost of air transportation is higher than that of land transportation. If the high-speed
railways between different countries will be built, the land transportation time of
Eurasia can be reduced. The transportation cost can be reduced at the same time.
Moreover, connecting Asian and European countries along the Silk Road and
building a commodity transport network can promote the economic development
and cultural exchanges of various countries.

For example, because of The Belt and Road's cooperation, China helped build the
Hungarian-Serbian railway. The Hungarian-Serbian railway runs 350 kilometers
from Budapest, the capital of Hungary, to Belgrade, the capital of Serbia. It is about
166 kilometers in Hungary and 184 kilometers in Serbia. The project is an electrified
mixed passenger and freight railway, with a design that top speed is 200 kilometers
per hour. The construction period is two years .After completion and opening to
traffic, the running time between the two places will be reduced from the current
eight hours to less than three hours.

Environment
Hungary is the largest investment destination in Central and Eastern Europe with
China. It is bordered by the most developed EU integration market in Western
Europe and the western Asia region, which is rich in natural resources .Hungary has
unique geographical advantages.

In the past few years, with the increasing increase in Hungary in Hungary, there are
nearly 5,000 Chinese companies and trading companies in Hungary. Most of them are
small businesses and companies, engage in clothing, shoes and hats and luggage
business, and also operate hundreds of Chinese restaurants. Large companies and
companies entering Hungary include Bank of China, "ZTE" and "Huawei Company".
Subsequently, a group of large-scale electronic enterprises, such as "Hisense", "Lenovo"
also entered Hungary, produced and assembled related products in the country.
Recently, "BYD" have also entered Hungary. With the entry of these large companies,
the China and Hungary trade have also entered a new stage and new environment.
(Chen, 2010)

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