BUDAPEST—Hungary’s parliament approved a government proposal on Tuesday to donate state-owned land to a planned Chinese university in Budapest, despite opposition criticism and a recent protest that accused the government of cosying up to Beijing. Opponents of nationalist Prime Minister Viktor Orban fear the planned $2 billion campus could undermine the quality of higher education and help Beijing increase its influence in Hungary and the European Union. Orban’s government argues that the school could help attract new research and development centres and new investments to Hungary, a central European country of 10 million people, which relies heavily on foreign investment to drive economic growth. Lawmakers of Orban’s ruling Fidesz voted overwhelmingly to donate four plots on the banks of the Danube River to a foundation in charge of the planned campus of Shanghai-based Fudan University, displacing a planned local student housing area. The law says the government must present the …