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It will also consider three other factors including whether the foreign entity violates market rules or contract spirit for non-commercial purposes, whether it causes actual damage to Chinese firms or related industries, and whether it poses actual or potential threats to China's national security, Zhi said.

"The output is expected to reach 2 billion yuan (291 million U.S. dollars) within 5 years," said Wang, adding that the company has been working hard for survival in the past three years.

Hungary is willing to work with China to maintain closer high-level exchanges, expand cooperation in areas like trade, investment, finance, and education, and closely coordinate and cooperate in multilateral affairs, so as to promote bilateral relations to make new progress, said Szijjarto.

The two countries will also uphold the spirit of replacing competition with coordination and continue to push forward the China-Japan relations on the right track.