Speaking in the parliament building on the last day of a visit to the Central European country, he called for political liberalisation in China.
Though he noted a growing openness in Beijing to dialogue, the Dalai Lama said that there are still hard-liners who believe that aggression is the answer.
On his seventh visit to Hungary, the 14th Dalai Lama, born Tenzin Gyaco in 1935, also had some advice for the Hungarian people.
He suggested Hungarians to work hard and remain optimistic. He was named an honorary citizen of the Hungarian capital by Budapest Mayor Gabor Demszky.