Research On China's Role In The Hungarian Foreign Economic Strategy

Since the Second World War the Hungarian foreign economic relations with the Far East have played a major role.The globalization and the dynamic development of the Asian region had a significant role in the change of the relations.China stands out among the Far Eastern countries,which today is one of the fastest growing and second largest economy in the world.This has made China to become one of the most attractive investment areas.Since the beginning of the 1990 s China has gradually become the main driving force in the world's economic growth.In the recent years the investment activity of Hungarian enterprises in China has increased significantly.The number of Chinese-controlled foreign subsidiaries has increased steadily as well.Hungary as a relatively small country can profit a lot from a relationship with China.Surprisingly the small European country has also a lot to offer to one of the biggest economies in the world.Although Hungary is not a prior target for the outflowing Chinese FDI over the past few years,nevertheless since 2000 the Chinese investment has an increasing trend in Hungary.This dissertation analyses and researches ways for Hungarian enterprises to follow the lead and example of the recent successful acquisitions and cooperation,as well as it gives directions to Hungary not only to grab the possible opportunities in the future to attract more Chinese investors,but also to start to put more effort in exporting to China in order to reduce the negative of the balance of trade.This paper is going to investigate and analyse the Hungarian foreign economic strategy and trying to find ways to improve the current situation.