Hungary again top European destination for Chinese FDI
Hungary received 31% of all Chinese FDI targeting EU and UK in 2024. Investment in EV manufacturing played a central role, with Hungary alone receiving 62% of all Chinese EV-related FDI, up from 57% the previous year.
Hungary is the top European destination for Chinese FDI for the second year in a row, according to the latest joint report by Mercator Institute for China Studies (MERICS) and Rhodium Group.
Hungary received 31% of all Chinese FDI targeting EU and UK in 2024, the highest share of any country, while the traditional “Big Three” – Germany, France and the UK – together accounted for just 20%.
Total Chinese FDI in the EU and UK reached EUR 10 billion, a 47% increase from 2023 and the first annual growth since 2016, according to the report. The growth was driven by greenfield projects, particularly in the automotive sector.
Investment in electric vehicle (EV) manufacturing played a central role, with Hungary alone receiving 62% of all Chinese EV-related FDI, up from 57% the previous year, according to a media release.
Four of the ten largest ongoing Chinese projects in the region are located in Hungary, including BYD’s passenger car factory in Szeged and CATL’s battery plant in Debrecen.
István Joó, Government Commissioner and CEO of the Hungarian Investment Promotion Agency (HIPA) said BYD has chosen Hungary also as the location for its European headquarters and R&D center, helping the entire economy to move towards the highest value-added activities.
“At HIPA, we are thankful for our partners and working tirelessly to give further momentum to this transformation,” HIPA CEO István Joó said.
HIPA was established in 2014 as a national investment promotion organisation, governed by the Ministry of Foreign Affairs and Trade.
