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Cooperation between China and Hungary on the rise

By Cao Yingying | chinadaily.com.cn | Updated: 2019-05-29 21:36
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The economic relationship between Hungary and China has prospered in the last few years and bilateral cooperation is expected to continue in the future, according to officials from the Eastern European nation.

To help the relationship continue in a positive direction, the Hungarian Export-Import Bank and Hungarian Export Credit Insurance are serving the country's the exporters by providing effective financing and insurance facilities.

Both institutions are fully state owned, with ownership rights exercised by the Minister of Foreign Affairs and Trade.

The mission of Eximbank and MEHIB, as Hungary's export credit agency, is to support Hungarian companies in their export activities, and facilitate the sale of their goods and services on foreign markets, as efforts to promote jobs and the growth of Hungary's export capacities.

Foreign trade between China and Hungary reached almost $9 billion in 2018, which shows a significant growth of 10 percent compared to the year before. This number represents the emphasis that Hungarian government and its export import industry take China as a strategic target country for Hungarian investors and exporter companies.

Two countries have been cooperating in several fields, out of which two are especially outstanding, namely the Memorandum of Understanding between the Eximbanks and the investment funds.

Last year, EXIM Hungary and the China Export and Credit Insurance Corporation, also known as Sinosure, signed a Memorandum of Understanding with the aim of strengthening the economic relations between the two countries. The purpose of the agreement is to encourage trade between Hungary and China and to promote bilateral trade and economic cooperation by strengthening the relations between the two institutions.

As part of the agreement, EXIM Hungary and Sinosure will continue to exchange information regarding the economic status of their countries and business opportunities favourable for companies from both nations.

Moreover, another highlighted area is the openness to offer the necessary financing, guarantee and insurance facilities for Hungarian-Chinese joint investment projects in either Hungary, China or in a third country. The agreement provides a solid base for exploring new business opportunities that contribute to the economic prosperity of both countries.

Another notable area of cooperation between the two countries is the establishment of joint funds. EXIM, through its financing and insurance facilities along with its equity funds plays a significant part in supporting the expansion of Hungarian companies to Chinese market.

Firstly, Eximbank has been an investor in the China CEE Fund since 2013, and due to the success of the partnership, they have launched a second fund together with a higher investment capital and a broader sectoral focus.

Furthermore, EXIM's Export Promotion Private Equity Fund has contributed to several projects, amongst them the smart parking system of EPS Global that is bound to solve the parking problems of several Chinese cities. The project in Yangzhong in Jiangsu province has already been implemented and is ready to be launched.

Based on the prosperous cooperation and joint successes so far, Hungary hopes that in the future there will be many more opportunities to strengthen the economic relations among esteemed countries.

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