Hungary pushes on with EV plants despite looming tariff clouds
As the EU considers making tariffs on Chinese electric vehicles permanent, Hungary is pushing back, citing concerns about an economic fallout.
A prime example is in Budapest with the construction of two major Chinese EV plants going ahead without delay.
Our correspondent, Pablo Gutierrez reports.
A prime example is in Budapest with the construction of two major Chinese EV plants going ahead without delay.
Our correspondent, Pablo Gutierrez reports.
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00:00The construction of a $7.3 billion battery plant by Chinese company CATL is well underway in Debrecen, Hungary.
00:09This facility will be a critical part of Europe's electric vehicle supply chain.
00:16In Szeged, Hungary, China's top electric car maker BYD plans to start production by 2025
00:23at its 300-acre factory currently under construction.
00:27Experts say these two projects are a key part of Hungary's growing electric vehicle industry.
00:34In 2023, we have seen that the Chinese FDI in the EU, especially in the EV cars, 44% of it came to Hungary.
00:47So it's a huge number, but we cannot forget that in the past 10 years,
00:52the 50%, so the half of the Chinese FDI in the EV cars, went to France, Germany and the UK.
01:01Horvath says the EU is divided over imposing tariffs on Chinese electric vehicles.
01:07The tariffs aim to combat perceived unfair subsidies that could let Chinese EVs undercut European car makers.
01:14Hungary, Slovakia, Germany, Spain and Sweden, however, plan to oppose these tariffs,
01:20citing concerns about potential economic damage to their automotive sectors.
01:25Negotiations between Brussels and Beijing are ongoing with both parties exploring alternatives.
01:32If these talks fail, the EU could impose tariffs of up to 35% for the next five years,
01:39risking a trade war with one of its biggest economic partners.
01:44Some experts say that Hungary has positioned itself competitively in the industry,
01:49even in the face of potential EU tariffs on Chinese electric vehicles.
01:54Well, from the point of view of the Hungarian government, the good news is that even if the European Union
02:00props up some of its anti-subsidy measures against the Chinese car producers,
02:06the cars produced in Hungary will be probably exempt of such measures because they are made in the European Union.
02:13Meanwhile, the EU remains focused on protecting its automotive industry, which employs around 14 million people.
02:20In recent talks, the bloc and Chinese officials said they had a constructive dialogue but reached no agreement.
02:27At the same time, China is investigating EU brandy and pork,
02:31checking if these products are being sold at unfairly low prices that could hurt local producers.
02:38Experts believe the EU still has time to reconsider and avoid a trade conflict with China.
02:44Pablo Gutiérrez, CGTN, Budapest.