China's has chosen Hungary as its trade beachhead into Europe - and the announcement of a $1 billion investment will have far reaching consequences.

China plans to build what it describes as a $1 billion commercial hub in the heart of Budapest to create a base for Chinese companies to showcase their products and services...and export them to Europe.

The aim is to use the commercial hub as a base to trade with the whole of the EU.

The China Brand Trade Center, as it will be called, will be base to 600 of the 'biggest Chinese companies', and these will be companies focusing on electronics, computing, software and construction, according to Andras Huszty, Hungary's government commissioner, responsible for Sino-Hungarian relations.

\"This is a huge, huge investment,\" Huszty said. \"It's the first such centre in Europe and we are going to be hosting it.\"