He said ties between Hungary and Bavaria were “forward-looking” and “built on firm foundations,” with both sides identifying shared goals.

“We are creating a transparent environment, free of corruption, for all businesses that want to invest in Hungary, including those from Bavaria,” he added.

Magyar said the two sides had discussed high-tech industries, artificial intelligence, research, innovation, pharmaceutical research and the defense industry. He added that they held similar positions on several European Union issues, including cohesion policy, the common agricultural policy and challenges facing the bloc.

Responding to questions, Magyar said the sides had agreed that automotive manufacturing centers in Hungary and Bavaria should not be viewed as competitors.

He said former Foreign Minister Péter Szijjártó’s recruitment by BYD was “negligible” in the context of the challenges China poses to the European automotive industry.

Magyar said Europe had made many mistakes, not only in the automotive industry but also in industrial regulation more broadly. He suggested that European supply chains could be strengthened and automotive, industrial and service capacity kept within the region.

Without “effective and logical” decisions, BMW could move capacity brought to Hungary farther east, to Asia, he added.

Magyar said Europe could compete by creating higher added value, “not by shutting the door on China,” but through regulated cooperation and a broad European strategy.

New German Investments “in the Pipeline”

Asked by MTI about possible new investments by German companies in Hungary, Magyar said the economy minister had held talks on several occasions with executives from Audi, Mercedes and BMW, and that new investments and developments were “in the pipeline.” Talks were also underway with engineering company Siemens, he added.

Magyar noted that around 140 Bavaria-based companies employ about 57,000 people in Hungary. He invited Söder to participate in commemorations marking the 70th anniversary of the 1956 Hungarian Revolution.

Söder said a joint government commission would be established to foster strategic dialogue in areas including research and development, culture, the defense industry, pharmaceutical research, the space and aeronautics industries, and support for the German-language Andrássy University in Budapest.

He noted that 30% of German investment in Hungary came from companies based in Bavaria.

Responding to questions, Söder said China posed a “great challenge” to the European automotive market that could not be overcome through protectionism.

“It is important for the Chinese market to remain open to Europe, but we would like a more level playing field,” he added.

In a post on Facebook, Science and Technology Minister Zoltán Tanács, who was part of the Hungarian delegation meeting Söder, highlighted the presence in Hungary of German-owned companies including Audi, BMW, Knorr-Bremse, Güntner and Rosenberger.

He added that cooperation could be strengthened and extended into new industries, including space and defense, biotechnology, AI, quantum computing and robotics.