CHINA. CHINA-Europe?? CHINA-CSEE?? CHINA-CSEE!! Possibilities and challenges for Hungary in new Chinese economic policy; trends of China - Europe cargo movement Ernő I. Pető Hon. Associate Professor President, ChinaCham Hungary Navigátor forum November 9 th, 2017 China Hungary CHINACHAM HUNGARY
A journey of a thousand miles begins with a single step 千里之行, 始於足下
Content General information, facts; One Belt, One Road Trends (China, world economy, Europe, Central- South-East Europe, Hungary) Possibilities, challenges Opportunities for Hungary as CSEE regional HUB
World (global) Economy Slow-growing markets (USA, EU); Fast-growing markets; (BRIC/BRIIC, BRIICS role of China) Shorter lifetime of goods; Fast reaction on changing market needs; Global production, assembly, sales and service; Requirements: flexibility tracking safety security CRM; E-commerce!!
CHINA GENERAL INFORMATION Economy, Economic Policy OBOR - B&R BRI; Urbanization; GDP, demand for natural resources, increasing raw material demand, renewable energy, environment protection; production domestic consumption change of export pressure, growing import demand; China as consumer market: Assembled in China, Made in China, Created in China, Made for China Economic potential, Efforts, Trends
Hungary our position
Terület: 103X Népesség: 142X GDP: 89X Növekedési ütem: 2,5X
GDP (China Hungary 2006-2014) 10000,00 9000,00 8000,00 7000,00 6000,00 5000,00 4000,00 3000,00 2000,00 1000,00 0,00 2006 2007 2008 Kína 2009 Magyarország 2010 2011 2012 2013 2014
China EU trade development 600 500 480 400 300 200 100 0 217 69 40 2,4 1975 1995 2000 2005 2010 Md USD
HUNGARY GENERAL INFORMATIONS Advantages by geographical location; Economy, Economic policy; Integrated decision-making process by the government; Eastern Opening policy; o o o o Development of Set of Tools, Financial System, Banking System (RMB Account (Bank of China Hungary, Gránit Bank, Raiffeisen, Unicredit), RMB SWAP center in CSEE region HNB BoC,
Volume OF TRADE Hungary s Foreign Trade, 2013 EXPORT: USD 95,9 billion (to Asia: USD 8,5 billion) IMPORT: USD 789,7 billion (from Asia: USD 13,8 billion) CHINESE EXPORT USD 5,6 billion HUNGARIAN EXPORT Total: USD 2,5 billion Via HK: USD 1,0 billion Via Germany: USD 1,5 billion CHINA - EU 2013 China Hungary: Total: USD 8,1 billion China Germany: Total: USD 158 billion
Eastern opening BRI 2014-2016 Opportunities: o Right Product (service, technology, etc.); o Right market segment (positioning); o Right Hungarian & Chinese partner ; o Technology transfer, innovation, R + D; Bottlenecks: o o Lack of: market knowledge, knowledge of local rules, local business contacts, foreign trade knowledge; language skill, adequate capacity; Financing (lack of investable money/bank loan). Answer: o importance and necessity (MUST) of cooperation.
Eastern opening BRI 2014-2016 Political relations, high level meetings Economic policies complement each other task: take the advantages!! Yearly 16 + 1 summits, meeting of ministers, and experts Outcomes: o o o regional centres in Hungary: financial, tourism, foodstuff); speeding up the negotiations; Budapest Belgrade railway line, BBCA citric acid factory, BYD, 2 SEC (CECZ, Wanhua Industrial Park);
EU China trade volume basic facts Dominant role in the global economy 2 nd strongest economic power Consumer market ( Audi, Mercedes, Volvo, high-tech, FMCG, fashion goods, foodstuffs, etc.) Shipping figures (annual) o Total ctr. volume: 175-180 MTEU (25 % of world total) * o China-EU ctr. volume: 14-15 MTEU EU-China ctr. volume: 8-10 MTEU * exp, imp., incl. Hong Kong and figures
Hungary as regional HUB - 1 UNITED KINGDOM DENMARK LITHUANIA NETHERLANDS BELARUS RUSSIA BELGIUM GERMANY POLAND LUX. PARIS FRANCE CZECH REPUBLIC SLOVAK REP. UKRAINE SWITZERLAND Trieste Koper Rijeka Incoming flows ITALY AUSTRIA SLOVENIA CROATIA Pireus HUNGARY BOSNIA & HERTZEGOVINA ALBANIA YUGOSLAVIA F.Y.R.O.M GREECE ROMANIA BULGARIA Constanta TURKEY
Hungary as regional HUB - 2 UNITED KINGDOM DENMARK LITHUANIA NETHERLANDS BELARUS RUSSIA BELGIUM GERMANY POLAND LUX. PARIS FRANCE CZECH REPUBLIC SLOVAK REP. UKRAINE SWITZERLAND Trieste Koper Rijeka ITALY AUSTRIA SLOVENIA CROATIA HUNGARY BOSNIA & HERTZEGOVINA ALBANIA YUGOSLAVIA F.Y.R.O.M ROMANIA BULGARIA Constanta Primary Pireus GREECE TURKEY Secondary
China-Europe share of volume (Iron road) 48% China via Russia
Target areas in CSEE region Market size 500 km - 200 million 750 km 450 million 1000 km 750 million
Central European Trade and Logistics Cooperation Zone - CECZ By the end of 2015: Accumulated investment: 920.6 million USD Total Development Area:126,600 square meters in: Self-built of The Experience Center: 40,500 square meters o Self-built of storage area: 24,700 square meter o Leased warehouse area: 61,400 square meters o Purchase of storage construction land: 14.7 hectares Settled enterprises: 155 companies Completed trade volume of settled enterprises: 438 million USD Employed local labour force: 1,427 people
Mission of CECZ Business platform Service station for Chinese enterprises on The Silk Road Help Chinese enterprises to open the Central and Eastern European markets with low cost Logistics platform
Business development initiatives, opportunities, top issues Logistics industry o Hungary: ideal place for regional physical distribution HUB o new logistic centres, new intermodal terminals Customs clearance, value added logistics services, assembling (Made in EU!!) Automotive industry (electric/hybrid cars, buses, spare parts and components) COOPERATION!! o V-4 countries o CSEE-16s o tools: CECZ other Chinese regional centres
To know the road ahead, ask those who are coming back
Thank you for Your kind attention! China Hungary CHINACHAM HUNGARY
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