Hungary’s Cybersecurity Relationship Challenges with Chinese-Built Telecommunications Infrastructure

The rapid development and proliferation of cyber-augmented infrastructure is a global phenomenon that requires national governments to develop new cybersecurity policies and strategies that include cooperation with other countries and alliances to protect national assets. Energy, manufacturing, logistics, and telecommunications are sectors critical to the stability and functionality of a nation’s international communications and commercial activity that require global connectivity in order to function. National governments face two challenges: protecting their own autonomy and control over state-level assets as well as developing and maintaining platforms for collective security alliances. Policymaking will be a balancing act to ensure both needs are realised.

The Central European nation of Hungary faces a complex reality when considering its development in cyber-augmented infrastructure and cybersecurity policy. Hungary has experienced a fast-paced development in cyber-augmentation of its state-level infrastructure thanks to investments from various Chinese firms. However, such investments have put Budapest’s security allies on edge with concerns about information assurance and potential risks to cyber-based espionage and sabotage. Hungary’s political leadership insists on maintaining such ties with China in pursuit of its own national objectives. Such an impasse necessitates mediation.

This report will provide an in-depth overview of the points of contention between Hungary and its security defence allies, the U.S. and NATO in particular, and what potential measures exist for addressing them with regards to maintaining Hungary’s security alliances simultaneously with its economic connections to China.