Exploring the Impact of Chinese Artificial Intelligence (AI) Integration in Central European Importer Countries: A Critical Analysis Through the Lens of Hungary's Nation Sovereignty Protection Act and EU AI Act

Abstract

China's investment in AI technology has reshaped the global tech landscape, notably impacting Sino-Hungarian relations. President Xi's visit to Budapest marks a peak in this relationship, with significant Chinese investments in Hungary's AI sector. This integration raises concerns regarding compliance with EU laws, national security, and individual rights. This study critically analyzes the incorporation of Chinese AI technologies within Hungary's legal framework, focusing on the National Sovereignty Protection Act and the EU's Artificial Intelligence Act. The findings reveal extensive use of Chinese AI surveillance in Hungary, facilitated by strategic partnerships and investments. Hungary's broad investigative powers under the National Sovereignty Protection Act conflict with EU regulations. Moreover, despite the EU AI Act's regulatory aims, its national security exemption provides member states with significant autonomy. This paper highlights the need for robust regulatory frameworks to balance technological advancements with individual rights and EU compliance.

Keywords: EU AI Act, National Sovereignty Protection Act, AI-powered Surveillance