146 THE PAST AND THE FUTURE OF HUNGARY’S DIPLOMATIC AND TRADE RELATIONS WITH EAST ASIA Editor: György Iván Neszmélyi BUDAPEST BUSINESS SCHOOL UNIVERSITY OF APPLIED SCIENCES 2019, BUDAPEST The Past and the Future of Hungary’s Diplomatic and Trade Relations with East Asia Editor: György Iván Neszmélyi THE PAST AND THE FUTURE OF HUNGARY’S DIPLOMATIC AND TRADE RELATIONS WITH EAST ASIA Editor: György Iván Neszmélyi BUDAPEST BUSINESS SCHOOL UNIVERSITY OF APPLIED SCIENCES 2019, BUDAPEST THE PAST AND THE FUTURE OF HUNGARY’S DIPLOMATIC AND TRADE RELATIONS WITH EAST ASIA ISBN 978-615-5607-71-4 © Budapest Business School © Authors Editor: György Iván Neszmélyi Copy editor: Amadea Bata-Balog Cover design and graphic: Baksa János All rights reserved. No part of this publication may be reproduced or used in any form or by any means without written consent from the publisher. Publisher: Budapest Business School, University of Applied Sciences Oriental Business and Innovation Center Printed in Hungary Contents Preface 9 About the Authors of the Volume 13 Sándor Sipos PhD – János Jákó Dr Te Growing Importance of Hungary’s Diplomatic and Trade Relations with Asia 15 Abstract 15 1. Asia’s Position and Relevance in Our World 15 2. Te Hungarian Way – Te Hungarian Model and Opening to the East and to the South 17 3. Te Tools of Hungarian Foreign Policy 22 4. What Does the Future Hold for Hungary in Asia? 28 References 30 Slobodan Popovic Geopolitical and Geoeconomic Position of Hungary within the “16 + 1” 33 Abstract 33 1. Introduction 33 2. Chinese Search for Multilateralism 35 3. ‘Frameworking’ of the “16+1” Framework of Cooperation 39 4. Hungarian Search for its Possibilities between China and EU 43 5. Conclusion 46 References 49 Réka Brigitta Szaniszló Viet Nam’s Importance for Hungary – Trough the Glasses of Higher Education 55 Abstract 55 1. Introduction 56 2. Importance of Viet Nam 56 3. Hungarian-Vietnamese Relationship 59 4. History of Educational Development in Viet Nam – Highlighting Higher Education 61 5. Educational Cooperation of Hungary and Viet Nam 65 6. Conclusions 67 References 68 Ágnes Zsuzsa Hrabovszki Enabling Trade – A Case Study of Korea 71 Abstract 71 1. Introduction 71 2. Trade Openness 72 3. International Agreements for Trade Facilitation 74 3.1. Regional Trade Agreements 74 3.2. Free Trade Agreements 74 4. Foreign Market Access 74 5. Security and Facilitation of Trade 80 5.1. AEO Programmes 80 5.2. AEO Mutual Recognition Agreements 82 5.3. Benefits from AEO Programmes and MRAs 83 6. Efficiency and Transparency of Border Administration 85 7. Operating Environment 88 8. Conclusions 88 References 70 Ingmar Niemann On the Way to an EU-Japan Free Trade Agreement: Japan’s Diplomatic Relations with the European Union afer World War II under the Focus of Economic Competition 93 Abstract 93 1. Introduction 93 2. Japanese Foreign Policy afer the Second World War within the International Structures 94 2.1. Japan and Western Europe as Part of the Western Community of Values 94 2.2. Te Importance of “Export” in Japan’s Diplomatic Relations 95 3. Japan’s Foreign Trade Policy in the Global Context 96 3.1. From Development to Boom and Trade Restrictions 96 3.2. Trade Policy Reorientation: from Multi- to Bilateralism 100 4. Te EU-Japan Free Trade Agreement in Response to New Global Challenges 103 4.1. Te Changed Global Framework and its Bilateral Consequences 103 4.2. Te Free Trade Agreement and its Main Content 104 4.3. Issues and their Solutions 106 5. Conclusion: Expectations and Perspectives 107 References 110 Attila Erdei Railway Trade Connections between China and Hungary in the 21st Century 113 Abstract 113 1. Introduction 113 2. Material and Methods 114 3. Results 115 3.1. Te Railway in China 115 3.2. International Connections of the Chinese Railways 117 3.3. New Policy: the “One Belt One Road” (OBOR) 120 3.4. Te Action Plan for the OBOR 120 3.5. Trade on Railway 122 3.6. China and Hungary Train Connections 125 4. Conclusion 126 References 128 Jiandong Shi China-Hungary Economic and Trade Cooperation Zone 131 Abstract 131 1. Introduction 131 2. Te Developing Advantages of China-Hungary Cooperation Zone 133 2.1. An Advantageous Geographical Position 133 2.2. Broad Market Prospect 134 2.3. Friendly Bilateral Relationship 134 2.4. Preferential Policy Support 135 2.5. Sound Financial Support Environment 136 3. Analysis of the Development Planning and Current Situation of China-Hungary Economic and Trade Cooperation Zone 137 3.1. Te Development Planning and Current Situation of China-European Business and Trade Logistics Cooperation Zone 137 3.2. Development Planning and Current Development Situation of China-Hungary Borsod Economic and Trade Cooperation Zone 139 4. Problems Existing in the China-Hungary Economic and Trade Cooperation Zone 139 4.1. Te Geopolitics of Central and Eastern European Regions is Sensitive and Has Big Security Risks 139 4.2. Intensive Competitiveness of In-Area Enterprises and the Enterprises of Western Countries 140 4.3. Big Cost Input and Long Return Terms 141 5. Conclusion and Suggestions 141 5.1. Use the Active Effect of Government 142 5.2. Build Risk Prevention Systems 143 5.3. Deepen the Cooperative Field and Promote Trade Diversification 143 References 144 Preface It is my sincere pleasure to recommend to you our newly published book which comprises a selection of the best papers of PhD students attending the conference on February 18, 2019 organized by the Oriental Business and Innovation Centre (OBIC) of Budapest Business School on the triple anniversary of the establishment of diplomatic relations between Hungary and Japan, China and the Republic of Korea. In 2019 we can look back over one and a half centuries to when Hungary establis- hed diplomatic relations with Japan. In 1949, Hungary was one of the first states to recognize the People’s Republic of China and in 1989, on the eve of the change of the political and economic system and just shortly afer the International Olympic Games in Seoul, Hungary was the very first country of the once socialist bloc to establish a diplomatic relationship with the Republic of Korea. Ever since the ancient Hungarians came down the Carpathian Mountains on horse- back and founded the Hungarian state, Hungary has been a part of European history and has shaped the fate of the continent, sometimes with a greater, sometimes with a smaller influence. Hungary has been present on the political, economic and cultural map of Europe for 1,100 years. Hungarians have learned how to adapt to the given cir- cumstances, and how to make progress, as well as how to give and take. Right at the beginning of their newly founded state, the Hungarians were converted to Christianity, and this provided a framework for the flourishing of Hungarian culture and intellec- tual life for about one thousand years. Both in terms of political and economic life present day Hungary is fully integrated into Europe, and in 2019 we celebrate the 15th anniversary of Hungary becoming a member of the European Union and the 20th anniversary of joining the North Atlantic Treaty Organization. Hungary’s main investors are European companies and nearly four fifhs of Hungarian foreign trade turnover is done with European countries. 10 In spite of all this, Hungarians are proudly aware that their ancestors originated from Asia, and therefore feel emotionally close to Asian nations. However, not only the positive emotions but also well-defined political and economic considerations bring Hungary closer to Japan, China, Korea and other Asian nations. In terms of political goals, I think we share common responsibility for the future of mankind. Global security is undividable; therefore, we should combat together, hand in hand against climate change, trans-boundary criminality, terrorism, nuclear proliferation, illegal immigration, human trafficking and other kinds of global problems. Tis is the solid common ground on which we share common values and interests. On the other hand, Hungary recognizes and pays respect to the spectacular economic devel- opment and achievements of the East and Southeast Asian economies: Japan, the Asian Newly Industrialized Economies, the People’s Republic of China, and most of the ten members of ASEAN. Te East and Southeast Asian regions—together with India and South Asia—are not only the most populous regions of the world, but the most rapidly growing economies, where purchasing power has also been continuously growing. It is not a brand-new issue that Hungary seeks for new markets, investors, investment possibilities in Asia, moreover these endeavours have gained new impetus since 2012 when the Hungarian government proclaimed its Eastbound Opening strategy. Tis policy favourably coincides with our partners’ interest and initiatives, like the Belt and Road global development strategy initiated by the President of China, H.E. Xi Jinping in 2013. Te horizon and the prospective of the future co-operation between Asia and Europe, including Hungary seem to be unlimited. A new generation of free trade agreements facilitates the trade between the European Union and Japan and also with the Republic of Korea, but we can also talk about new generations of professionals, including our students, who are travelling more and more to Asia or starting to learn Chinese, Japanese, Korean or other Asian languages. My vision is that in one or two decades, hundreds of Hungarian businessmen, engineers, medical doctors and other professio- nals will be fluent in Asian languages, not just attained to get well paid jobs at Asian companies, but they will be the catalysts of the future enhancement of the friendly relations between Hungary and Asian nations. 11 This book comprises seven studies covering various parts of the broad field of Hungaro-Asian relationships and co-operation.