Hungary has been an active participant in China’s 16+1 initiative which is a cooperation scheme launched by Beijing in 2012 to facilitate comprehensive cooperation between China and 16 Central and Eastern European countries. The relationships between China and Hungary have improved greatly since then and China’s political and economic presence in the country is increasingly visible. Apart from the Budapest-Belgrade railway, the recent high-profile Chinese investment in Hungary includes a vaccine plant and Fudan University branch campus in Budapest. Since their bilateral relations have deepened, will China’s political and economic presence in Hungary impact Hungary’s relations with the European Union (EU) and the EU’s unified stance towards China? This article evaluates the impact of the 16+1 initiative on Sino-Hungarian political and economic relations and the impact of their engagement on Hungary’s relations with EU institutions and initiatives.