Hungary is first in Europe to sign up for China's New Silk Road plan
Hungary is first in Europe to sign up for China's New Silk Road plan
Hungary has become the first European country to sign a cooperation pact for China's New Silk Road initiative to develop trade and transport infrastructure across Asia and beyond, in a move other European countries are expected to follow.
The move will also boost the popularity of the Beijing-led Asian Infrastructure Investment Bank (AIIB) in Europe, prompting more nations to either invest in or apply for loans from the bank in future, analysts say.
Foreign Minister Wang Yi on Saturday signed a memorandum of understanding with his Hungarian counterpart Peter Szijjarto in Budapest to cooperate in the New Silk Road network - China's "One Belt, One Road" strategy to link Asia and Europe economically.
Wang said the agreement - the first of its kind between China and a European nation - was "a role model for others to join this process", according to the Chinese foreign ministry.
Szijjarto said the "One Belt, One Road" initiative had played an important role in boosting the global economic recovery.
President Xi Jinping hopes for annual trade with the countries involved to surpass US$2.5 trillion in a decade.
Cui Hongjian, director of the China Institute of International Studies' Department for European Studies, said the pact was significant as it allowed China to use Hungary's example as leverage to encourage other European nations to sign up.
"While the initiative is highly attractive to many countries, they are concerned about what the concrete cooperation plans will be … They now have a model to follow," Cui said.
Countries could either adopt the Hungarian format or devise their own in seeking cooperation with China, he said.
Analysts say the pact is significant also because it bolsters the AIIB's reputation in Europe, paving the way to expand its business in the region, given that the investment bank and the New Silk Road network are closely linked.
"In the present stage, the AIIB is more inclined to deal with its Asian partners, but it has room to grow to expand its service to other continents, including Europe," Cui said.
Projects under the New Silk Road initiative include a network of railways, highways, oil and gas pipelines, power grids, internet networks, maritime and other infrastructure links across Central, West and South Asia to as far as Greece, Russia and Oman, increasing China's connections to Europe and Africa.
