EU Faces Economic Cold War with China as Hungary Warns of Trade Tensions

Hungarian Prime Minister Viktor Orban cautions that the EU is on the brink of an 'economic cold war' with China due to planned tariffs on Chinese-made electric vehicles. Hungary's investment ties with China grow amid EU's increasing scrutiny, raising concerns over economic neutrality and sovereignty.

The European Union faces a potential 'economic cold war' with China, according to Hungarian Prime Minister Viktor Orban. This warning comes as the bloc prepares to vote on implementing tariffs on Chinese-made electric vehicles (EVs), a move that could lead to significant ramifications in international trade relations.

Orban, who has cultivated strong trade ties with China, criticized the EU's proposal to impose up to 45% tariffs on Chinese EV imports. His comments highlight Hungary's strategic position in central Europe, especially as the nation seeks to balance economic interests between the East and West.

While the debate continues, Hungary remains a key investment destination for Chinese companies, with major projects in the works. Orban's approach underscores the delicate balance between maintaining economic growth and navigating geopolitical pressures from both the EU and China.

(With inputs from agencies.)