Heart of Europe
The Central Europe region: The Heart of Europe by definition
The region contains 13 countries as:
Austria, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia, Serbia.
What makes the region so attractive for a growing number of investors?
It is the gate from Asia to Europe!
Strategically cutting cost, building an “insider bridge” to Western Europe market and finding a great, price-sensitive, huge target market.
||Significantly cut their business costs through high-level and relatively cheap education system and world-class talent management.
||Get integrated into the industrial system within the European Union. China is looking at the Central Europe region as a useful entry point into the rich economies of Western Europe. This is an already proven golden opportunity for relocation logistic centers or plants. It can be also a long term answer and solution for the trade limitation that Asian, African fast growing companies face.
||Find new market as Central Europe on its own: The considerable market size of these countries is approx 122 million people providing great opportunity in itself to enter into such a great potential market for competitive corporations.
The Chinese-Hungarian economic relationship are intensifying over the last several years. China is Hungary's largest trade partner outside the European Union. Hungary is the largest destination for Chinese investments in Central and Eastern Europe.
“Chinese government is ready to deepen strategic cooperation with Central and Eastern European countries, and the country has received a positive response from Hungary.” Guan Chengyuan, former Chinese ambassador to the European Union. 2012
Few of the already successfully executed examples:
Huawei: “Hungary is the Heart of Europe”
|Huawei is the largest Chinese company in Europe in terms of investment volume. It employs 7,000 people around Europe, started its operation in Hungary in 2005.
The company built a strategic EU supplier local headquorters in Pécs and Komarom, also operation European Logistics Center in Üllő with the export-import index of 1.5 billion USD. Thanks to the ongoing increase of operation, Huawei plans to increase their annual revenue by 30% in the year of 2013.
"Hungary is the center of Europe, and it boasts a developed logistics industry and service sector," Justin Zhang, a Huawei public relations manager for Central and Eastern Europe. (china.org.cn, 2 May, 2012)
ZTE Corporation – “great human resources in the region”
“Hungary really welcomes Chinese investment, as we help to create jobs here and stimulate the economy," Chang Xiaowei, a sales and marketing manager for Central and Eastern Europe - ZTE.
ZTE Corporation is a leading global provider of telecommunications equipment and network solutions. Through its network of operators across 140 countries, the company delivers innovative products and business solutions.
ZTE has been operating a subsidiary in Hungary for more than six years.
The company has many projects and great operator partners in Central Europe because it has shifted its focus to the European market. With its rapid market expansion, ZTE is increasing the scale of investment in the region and has chosen Budapest as the location of new European regional network operation center and call center because of the good human resources, the supportive governmental openness and the natural environment of the city. ZTE has been operating a subsidiary in Hungary for more than six years.
China Civil Engineering Construction Corporation
The company signed a memorandum worth $1 billion on building a 20-kilometer rail express linking the airport to the downtown Budapest in 2012.
Zhuzhou Times New Material Tech. Co.
The corporation plans to establish a base in Hungary to sell earthquake resistant building technology on European markets. The base isolation technology was developed with the assistance of a Hungarian professor, Emanuel Csorba.
(Budapest Business Journal, April 25, 2013)
Government Level agreement example:
As part of the seven cooperative deals, the Chinese and Hungarian commerce and agriculture ministries signed cooperative memorandums on cooperation of small and medium-sized enterprises and cooperation in agriculture. China Development Bank signed an agreement with the Hungarian government on a finance framework.