CEU Electronic Theses and Dissertations, 2025
| Author | dr Hermanyi, Bence |
|---|---|
| Title | Chinese FDI and its Economic Impact on Hungary, a case study in the shadow of the new FDIS and FS Regulation |
| Summary | Since 2014, Hungarian-Chinese trade relations have experienced substantial growth, with exports increasing by 8%, imports rising by 131%, and total trade turnover expanding by 95%. Hungary has been able to achieve this staggering trade growth mainly through neutral1 economic and governmental policy, which resulted in attracting Chinese investors. As a result, Chinese investment tendencies have shifted towards the CEE region from Western Europe, and Hungary received a significant 44% of all Chinese FDI in Europe, more than France, Germany and the UK combined.2 The question arises, however, whether the excessive new FDIS and FS Regulations in the EU are going to hinder the inflow of Chinese FDI. These Regulations are targeting Chinese investments, given that Chinese companies usually enter the European market with significant state support, gaining competitive advantage and driving down prices at which European manufacturers cannot compete. These aspects of Chinese investments make it particularly problematic from the point of view of the EU’s authorities. The aim of this thesis is to explore what are the short- and long-term economic impacts of major Chinese FDI projects in Hungary and how the new FDIS and FS Regulations could change the inflow of these investments and the competitiveness of both Hungary and the EU. This research is concluded with the finding that the current FDIS and FS Regulations are understandable for controlling Chinese FDI, despite the beneficial effects of Chinese investments and the fact that excessive Regulations hinder the inflow of these investments. The thesis approaches the research question from two angles. On one hand the thesis is contributing to the ongoing debate on the balance between economic security and openness in the EU, investigating the fundamental problem how the extensive FDIS and FS Regulations will interact with the EU competitiveness and investment environment. It also highlights the potential risks of fragmentation within the EU when Member States pursue divergent FDI policies. On the other hand, through an interview with the Director of the HIPA, it presents the largest Chinese FDI investments in Hungary, exploring the core question whether Chinese investments are beneficial to Hungary’s and the CEE region’s economy. Through the interview, the reader of this thesis will gain insight how these investments are affecting the Hungarian economy in the short- and long-term. |
| Supervisor | Soave Tommaso |
| Department | Legal Studies MA |
| Full text | https://www.etd.ceu.edu/2025/hermanyi_bence.pdf |
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