A Comparative Study of the Advantages and Disadvantages of Overseas Destinations for Chinese Enterprises: The Case of Hungary

Abstract

Against the backdrop of the high alignment between China's Belt and Road Initiative and Hungary's “Opening to the East” strategy, Hungary has emerged as a popular choice for Chinese companies looking to expand into Europe, leveraging its unique advantages. This paper combines the strengths and weaknesses factors of the SWOT analysis method with the PEST analysis method to form the Strengths and Weaknesses integrated with PEST analysis (SW-PEST model), which is used to assess the strengths and weaknesses of Hungary's investment environment under the influence of political, economic, social, and technological factors. The advantage of using the SW-PEST model is that it combines strengths and weaknesses with the PEST factors of the external macro environment to form a more systematic and comprehensive strategic analysis framework. By conducting cross-destination comparisons with Serbia, France, Greece, and Sweden, and analyzing the differences in the basic circumstances and strategic positioning of the CATL Hungary project, this paper provides recommendations and strategies for Chinese companies looking to expand into Hungary. In the future, Chinese companies should conduct thorough preliminary research on local regulations and public opinion, promote localized compliance operations, and build bridges for cross-cultural communication to achieve sustainable investment in Hungary.