By Zhang Tie, People’s Daily

In the city of Ankang, located in the south part of northwest China’s Shaanxi province, a burgeoning plush toy industry has taken shape, one that’s bringing economic vitality and abundant employment opportunities.

The sight of workers stitching together colorful fabric pieces to make cuddly plush toys has become a common scene in the city’s Hengkou Demonstration Zone, where the Heng’an Toy Factory is located.

Each day, over 30,000 of these plush toys are “born” at the factory, a testament to the remarkable growth of Ankang’s plush toy industry.

It was on Jan. 23, 2018 that the first “made-in-Ankang” plush toy rolled off the production line. Yet, in just over five years, the city has attracted more than 800 related enterprises, providing nearly 20,000 jobs and generating an annual output exceeding 6.1 billion yuan ($844.1 million). This has made the city one of China’s four major plush toy production hubs.

The success of an industry in a particular location depends on how well it aligns with the local conditions.

Situated in the Qinling-Bashan mountainous region, Ankang has seen nearly one million people relocate from the mountains to urban communities as part of various resettlement and poverty alleviation programs.

The plush toy industry, which can absorb a large labor force, provides an ideal opportunity for these relocated residents to find stable employment and increase their incomes.

Additionally, Ankang is an important water conservation area for the South-to-North Water Diversion Project, and the plush toy industry perfectly meets environmental protection standards.

By capitalizing on these local conditions and matching supply with demand, the plush toy industry naturally became an eco-friendly industry that creates benefits for the people in Ankang.

In the factory of Shaanxi Hengtong Fiber Ecotechnology Co., Ltd.(Hengtong Fiber), discarded plastic bottles are transformed into soft, cotton-like PP (polypropylene) filling material for plush toys.

In the past, Ankang lacked the capability to produce this crucial stuffing material locally. However, in March 2021, the establishment of Hengtong Fiber extended the plush toy industrial chain in Ankang, reducing transportation costs for raw materials by 5 percent and enhancing the overall efficiency of the industrial cluster.

Today, the cluster encompasses upper stream sectors like filling cotton, fabrics, buttons, and decorations. It also branches into trendy collectibles, cultural tourism, and intellectual property (IP) development.

The growth of the plush toy industry has extended the supply chain, streamlined logistics, and built a comprehensive value chain. Integrating this “chain-based” philosophy throughout the development process, while pooling industry resources and cultivating an industrial cluster has undoubtedly been a valuable experience of Ankang.

For an industry to progress and expand, continuous innovation is essential. In Ankang, enterprises have developed new materials and varieties of plush toys by utilizing locally abundant resources such as silkworms and moso bamboo. Collaborating with renowned museums and scenic spots, the city has launched special IP development projects that combine plush toys with cultural and creative products. Additionally, industrial tourism routes have been introduced, featuring plush toy plazas, themed hotels, and themed blocks, providing visitors with an immersive and memorable experience.

By staying attuned to industry trends, increasing research and development investments, and continuously improving innovation capabilities, Ankang has managed to stand out in the fierce market competition.

The rapid transformation of Ankang into China’s fourth-largest plush toy production base within just a few years can be attributed to the synergistic efforts of both “visible and invisible hands,” namely the functions performed by the government and the decisive role played by the market in allocating resources.

In October 2017, after conducting research, a poverty alleviation working group in Ankang, part of a Jiangsu-Shaanxi Poverty Alleviation Cooperation Project, submitted a report recommending that Ankang seize the opportunity presented by the relocation of the plush toy industry and transform itself into a hub for creative toys. This report laid the foundation for the future development of Ankang’s plush toy industry.

The city has established a 100-million-yuan fund for supporting the cultural and creative plush toy industry, organized creative design competitions, built an innovation base for the cultural and creative plush toy industry, and constructed a “dry port” and utilized the China-Europe freight train service to reduce logistics costs.

The prosperity of Ankang’s plush toy industry is exactly a result of a combination of external demand for industry relocation, internal demand for employment and wealth creation, and objective conditions for industrial development, as well as with the decision made by local authorities to vigorously develop the industry.

By capitalizing on its resources, seizing market opportunities, breaking away from traditional industrial development paths and embracing an innovation-driven development model, Ankang has successfully blazed a new trail in the plush toy industry, revitalizing the local economy and enriching its residents.

By Yu Limin, Zhang Huizhong, People’s Daily

Hungary is the first European country to sign an inter-governmental cooperation document on Belt and Road cooperation with China. In recent years, under the strategic guidance of the leaders of both countries, the Belt and Road Initiative (BRI) has been aligned with Hungary’s “Opening to the East” policy, resulting in fruitful cooperation across various sectors.

Significant achievements have been made in green development areas such as new energy vehicles, lithium-ion batteries, and photovoltaic products, injecting new impetus into the mutually beneficial cooperation between China and Hungary.

The automotive industry is one of the pillars of Hungary’s economy. More than 10 out of the top 20 global automobile manufacturers have established vehicle manufacturing plants or automotive component production bases in Hungary.

To embrace green transformation in the transportation sector, the Hungarian government launched an electric vehicle development plan in 2016. Chinese electric vehicle companies have been closely cooperating with Hungarian counterparts, and their brand recognition has been continuously increasing.

In April 2017, an electric bus factory of Chinese new energy vehicle manufacturer BYD in north Hungary’s Komarom officially started production. It is BYD’s first electric vehicle factory established in Europe.

In September 2022, Chinese electric vehicle maker NIO’s first overseas factory was put into use in Biatorbagy, Hungary. The factory serves as NIO’s manufacturing, service, and research center for charging products in Europe, providing local consumers with battery swapping stations.

In January this year, BYD set up a new energy vehicle production base in Hungary’s Szeged, which is the sixth Chinese automotive manufacturing plant in Hungary and is expected to offer thousands of job opportunities.

“Hungary has a mature industrial chain for automotive manufacturing. While leveraging Hungary’s advantages in the industry, we are bringing advanced manufacturing techniques and highly automated production lines to the Hungarian market from China, so as to support the electrification of the Hungarian automotive industry and promote technological exchange and innovation between China and Hungary,” said an executive from BYD.

Hungarian Minister of Foreign Affairs and Trade Peter Szijjarto said that the automotive manufacturing sector is a pillar industry in Hungary, and attracting Chinese investment is crucial for strengthening Hungary’s position in global new energy vehicle development.

Power batteries are key components of new energy vehicles, accounting for approximately 40 percent of the total vehicle cost. With advantages such as fast charging, long range, and high safety, Chinese lithium-ion batteries have become an important aspect of China-Hungary cooperation in the field of new energy.

In March 2022, Chinese lithium-ion battery company EVE Energy Co., Ltd. (EVE) announced a plan to build a factory in Debrecen, Hungary to produce cylindrical cells.

Five months later, Chinese battery manufacturer and technology company CATL also announced to build a battery plant in the city, which will become one of the largest battery factories in Europe once completed.

Additionally, other Chinese power battery companies and related material enterprises, such as SEMCORP, Huayou Cobalt, and Sunwoda, have also started building factories in Hungary.

The investment of Chinese battery companies like CATL in Hungary has stimulated the development of the Hungarian battery industry, and factories built by Chinese carmakers including BYD in Hungary have also promoted the development of the local automotive industry, said Andrea Nagyne Boda, head of the International Cooperation and Development Finance Department at the Ministry for National Economy of Hungary.

Hungary-China cooperation projects not only benefit the Hungarian people but also contribute to the entire Europe’s enjoyment of the benefits of new energy, Andrea added.

Hungary’s electricity import stands at around 30 percent. In order to diversify the country’s energy supply, the Hungarian government has been actively exploring solar energy resources and developing the photovoltaic industry.

In June 2019, China National Machinery Import & Export Corporation (CMC) under China General Technology (Group) Holding Co., Ltd., invested in a 100 MW solar park in Kaposvar, Hungary, which is one of the largest renewable energy facilities in Hungary.

Since its operation in 2021, the solar farm has generated over 140 million kilowatt-hours of electricity each year, which is equivalent to saving 45,000 tons of standard coal and reducing 120,000 tons of carbon dioxide emissions on an annual basis.

CMC implemented a series of environmentally friendly measures when the solar farm was constructed. For instance, it replaced impact piles with spiral pile photovoltaic brackets to minimize land damage. It hired landscape experts for ecological planning and conducted large-scale greening around the factory area.

Kaposvar’s mayor Karoly Szita said that the Kaposvar solar farm is not only an exemplary collaboration in clean energy between Hungary and China but also a testament to the friendship between the two countries.

“Green transformation is a global trend, and the development of new energy is crucial for restructuring global energy supply. China has provided us with excellent opportunities in this field, and the deepening of green cooperation between our two countries has achieved mutual benefits and win-win outcomes,” said Marton Bokay, deputy state secretary of the Hungarian Ministry of Economic Development.

By Yan Huan, Han Shuo, Liu Zhonghua, People’s Daily

The Hungarian-Chinese bilingual school was established in Budapest, capital of Hungary, in September 2004. It is the first full-time public school in Central and Eastern Europe that uses Chinese and the local language for instruction. Over the past nearly 20 years, the school has played a unique role in promoting cultural exchanges between China and Hungary over the past two decades.

In early 2023, Chinese President Xi Jinping replied to a letter from the students of the school, encouraging the Hungarian youths to learn more about China and become envoys of the China-Hungary friendship.

When the school was just founded, it had around 100 students, and now the figure has surged to more than 500. More and more Hungarian students are embracing the Chinese language and culture, and many of them have been admitted to Chinese universities.

“Our goal is to nurture a batch of ‘builders of Hungary-China friendship,'” said Zsuzsanna Erdelyi, principal of Hungarian-Chinese bilingual school.

She told People’s Daily that apart from local students, the school also enrolls those from China, so that students from the two countries can learn and play together, which not only helps improve their academic performance, but also fosters profound friendship between them.

When a class was over, eleventh-grade students Sanyi and Li Fulin started playing Chinese chess in a corridor. Sanyi once lived in China with his father. He was sent to the bilingual school by his parents after they saw the prospering development of China and the huge potential of Hungary-China cooperation.

“It was so difficult for me to learn Chinese as a beginner,” Sanyi said. However, as he gained more and more Chinese friends, he has gradually developed a passion in speaking Chinese.

“Last year I had a study tour to China, during which I visited Nanjing University. I like it very much and hope I can be admitted to the university one day,” Sanyi told People’s Daily.

To create a better learning atmosphere for the students, the Hungarian-Chinese bilingual school holds rich and splendid cultural activities that invite parents and all sectors of Hungarian society.

For instance, it has opened a Chinese language class for parents and hosts “Chinese open days” during traditional Chinese holidays, to encourage students and their parents to join fun cultural activities such as Chinese tea brewing, paper cutting and lantern making.

Erdelyi said the Chinese culture is charming and joining these activities offers so much fun.

Papp Nora and Papp Dora are a pair of twins who have been learning at the Hungarian-Chinese bilingual school since they were very young. The two eighth-grade students consider the school their second home.

“The teachers always help me with patience and answer my questions,” Papp Dora said, adding that Chinese is a very beautiful language. According to her, she likes Chinese calligraphy while her sister loves traditional Chinese costumes. The two practice Chinese together every day.

Educated by the school, the twins have developed carefulness, diligence and resilience, which are all important qualities in any stage of life, said Trippon Mariann, mother of the twins, and chief economist of a Hungarian bank. She’s very optimistic about the potential of the Chinese economy, and believes that learning Chinese would gain her children more advantages for their future development.

Li Elizabet Fanni studies at Fudan University, Shanghai. She is one of the earliest students of the Hungarian-Chinese bilingual school to study in China. Recently, she served the China Import and Export Fair, also known as the Canton Fair, as a volunteer, offering services for Chinese and Hungarian enterprises.

“I hope more young Hungarians can visit China and see with their own eyes the development of the country,” she said, adding that she and other students will work to contribute to and carry on the Hungary-China friendship.

After nearly 20 years of development, the Hungarian-Chinese bilingual school has become an important witness to the bilateral relations between Hungary and China, Erdelyi said, adding that Xi’s first-ever state visit to Hungary will bring huge encouragement and inspiration to students of the school.