The Impact of Chinese Investments in Hungary on the Sustainability of Global Value Chains: Challenges and Future Opportunities

This study examines the impact of Chinese foreign direct investment (FDI) in Hungary on the sustainability of global value chains (GVCs). Drawing on data analysis and literature review, the paper highlights how Chinese investment has facilitated Hungary’s industrial modernization, technological upgrading, and green transition, particularly in the automotive, electronics, and high-tech sectors. The findings show that while Chinese FDI contributes to economic growth, technology transfer, and environmental sustainability, it also introduces significant challenges, including investment volatility, policy and regulatory pressures, and the risk of economic dependency. Hungary’s participation in the Belt and Road Initiative (BRI) further strengthens its role as a strategic hub in Central and Eastern Europe, enhancing regional integration while simultaneously raising concerns about long-term reliance on foreign capital. The paper concludes with policy recommendations, emphasising the need for Hungary to balance foreign and domestic interests, promote green investment, and strengthen its capacity for innovation to ensure the sustainable integration of Chinese investment into global value chains.