In the late 1970s, Hungary began working toward better relations with China. Trade and economic relations began to expand in 1983, followed by the improvement of interstate relations and cultural ties. However, because of ideological differences, Hungarian-Chinese relations focused on economic ties. In 1985 the two countries signed a long-term foreign trade agreement to expand bilateral economic and trade cooperation. The two countries also agreed to exchange information on their economic reform efforts. Imports from China rose from 0.6 percent of Hungary's total in 1984 to 1.8 percent of the total in 1986. Exports to China rose from 0.8 percent of the total to 1.9 percent of the total in that same period. Hungarians participated in several Chinese industrial development and reconstruction programs.

By 1982 both communist parties began to show an interest in resuming political relations. In 1985 the HSWP sent the Chinese Communist Party (CCP) the guidelines for its Thirteenth Party Congress. In return, the CCP sent a message to the "dear comrades" of the HSWP, wishing the Hungarian people success in the building of socialism.

Political relations intensified in 1987. In June Chinese premier and acting general secretary of the CCP Zhao Ziyang visited Hungary. Kadar's visit to China in October 1987 marked the resumption of party-to-party relations. The Chinese praised Hungary's reform program and called Kadar's visit "historic" because it symbolized a new era of friendship and cooperation between the two peoples.

Data as of September 1989