"That is, if that equipment is co-located where we have important American systems, it makes it more hard for us to partner alongside them".
Hungarian Prime Minister Viktor Orban is a staunch opponent of the EU's migration policy; his premiership has been marked by clashes with George Soros, a billionaire who champions the global liberal agenda, resulting in his Open Society Foundations NGO being forced out of Hungary.
"We have to show up or expect to lose", one official said.
Hungary's Szijjarto brushed off U.S. concerns, saying Budapest was fulfilling its obligations to western allies as a member of the North Atlantic Treaty Organisation military alliance.
The US has repeatedly accused China of using technology to pilfer trade secrets. China recently has said that it's "totally unreasonable" to make some of these accusations and that the U.S.is just trying to suppress a rising competitor. He will wrap up the tour with brief stops in Belgium and Iceland.
Over the course of the past 10 years, the officials said, Russian President Vladimir Putin and Chinese leaders have become much more aggressive in the region and made inroads.
One official said Pompeo's aim is to "wrong-foot the West's rivals in places where they have gained bridgeheads".
Mr Orbán was returned to the role of premier in the April 2018 elections, winning a parliamentary supermajority and his third consecutive term in office after running on a manifesto of protecting the country's border, defending Hungarian culture, and supporting families.
Orban, who has taken a hardline "zero tolerance" approach toward immigration, said the new initiatives are meant to "ensure the survival of the Hungarian nation".
Pompeo put the blame for much of the backsliding on a lack of US engagement.
Hungarians see this in a different light. "The Russians and the Chinese ended up getting more influence here, they do not remotely share the American ideals that we care so deeply about".
"So numerous concerns that are voiced are things that have happened in the absence of America being engaged, so I think it's centrally important that we're here", he said. He also said that families with at least three children will get a subsidy of almost $9,000 for the purchase of a seven-seat vehicle, and that women under the age of 40 who marry for the first time will get a low-interest loan of over $35,000.
U.S. Secretary of State Mike Pompeo speaks to the media at the United Nations following a Security Council meeting about the situation in Venezuela in the Manhattan borough of New York City, New York, U.S., January 26, 2019. Some of their groups have been targeted by legislation making their work more hard, like a tax on funds received from overseas and the possible jail time for those convicted of aiding asylum seekers.
Orban's government has been targeted for criticism, including from the U.S., for forcing a Budapest-based university founded by billionaire philanthropist George Soros to move most of its programmes to Vienna.