In summary of his visit to China, Minister of National Development, Tamás Fellegi, who also acts as Government Commissioner for Hungarian-Chinese Bilateral Relations declared that since the establishment of diplomatic relations, the two countries have been experiencing the most intensive period in their cooperation. Further agreements are expected to be signed in the near future about the utilisation of the EUR 1 billion development limit granted for projects in Hungary. The first specific project to be implemented may be the urban rapid transit system connecting Budapest with the Liszt Ferenc Airport.
Among others, the Government Commissioner conducted forward-looking negotiations with the representatives of the Chinese national bank on the realisation of policy decisions related to bonds purchase. The parties confirmed that Chinese financial institutions and investment funds will continue buying Hungarian government bonds and securities.
Tamás Fellegi announced that in the near future he may sign an agreement with the Governor of the China Development Bank on the method and conditions of using the EUR 1 billion limit. In early 2012 the Hungarian Development Bank may enter into a contract with its Chinese counterpart concerning the list of the projects that can be financed from this amount and their time schedule.
Based on an arrangement between MÁV Zrt. and the construction industrial company China Railway Construction Corporation (CRCC), the urban rapid transit system connecting Budapest with the airport may be started first. The head of the Chinese company highlighted that they expected a significant amount of Hungarian subcontractors and suppliers to participate in the project that can be financed, among other sources, from the EUR 1 billion project financing limit.
In Shanghai the minister consulted the representatives of Chinese financial enterprises, including Haitong and Fosun, on the cooperation opportunities between these companies and the Hungarian Development Bank regarding investment, lending and the purchase of securities. In Hong Kong, he had talks with the finance minister, the foreign policy leader of the region and the chairman of the local stock exchange. He also had talks on a provincial level on the infrastructure and water management investments and joint projects considered feasible by the Hungarian and Chinese experts, and the manner of their financing.
The numerous partners on the minister’s negotiation agenda included the top management of the iron and steel company Metallurgical Corporation of China (MCC) and the railway operator China CNR Corporation. He visited the Ningbo facility of Wanhua Industrial Group, owner of BorsodChem, and Westinghouse Electric Company’s nuclear power plant under construction in Sanmen.
As the highest ranking foreign visitor at the Shenzhen Hi-Tech Fair, Tamás Fellegi opened the forum together with Deputy Minister for Commerce Li Jinzao, Acting Provincial Governor of Guangdong Wang Yang, and Mayor of Shenzhen Xu Qin, on 16 November 2011 in China’s high-tech centre. In his lector he highlighted that research and innovation were focal elements in the Hungarian Government’s economic policy and the driving force in Hungarian-Chinese bilateral relations. With its favourable geographical location, high-standard education and scientific background, as well as its considerably streamlined tax system, Hungary is a Central European state that can keep the ground in the competition for Chinese investments.
(Ministry of National Development , Department of Communication)
