Hungary probes deal with China’s BYD carmaker after ex-foreign minister takes job there
The review will examine subsidies, tax breaks and permits tied to the investment, after officials accused Péter Szijjártó of helping BYD with public money.
- On Monday, July 13, Hungarian Prime Minister Peter Magyar announced an investigation into BYD investments negotiated by former Foreign Minister Szijjártó, who resigned to join the Chinese automaker. The probe examines potential conflicts of interest regarding state subsidies and infrastructure support.
- Criticism followed Szijjártó's announcement last Wednesday that he accepted an executive role at BYD, a company he previously helped secure $63.7 million in government assistance. Critics allege he facilitated substantial public funding for his new employer while serving in office.
- Magyar stated the probe will investigate all tax breaks, permits, and environmental exemptions granted to multinational firms under the previous administration. These investments were part of a broader government push to establish Hungary as a global hub for lithium-ion battery manufacturing.
- Neither Szijjártó nor BYD have responded to the conflict of interest allegations. Szijjártó previously faced controversy regarding his ties to Russian Foreign Minister Sergey Lavrov, though he dismissed reports that he provided Lavrov with sensitive information during European Union meetings.
- Residents and opposition politicians have protested the influx of Chinese battery manufacturers, citing fears regarding environmental damage and water supply depletion. These projects, often facilitated by Szijjártó, remain central to the government's economic strategy despite ongoing criticism.
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42 Articles
By the end of the year, the Chinese battery and car company BYD is increasing production in Hungary. At the beginning of the year, 150,000 e-cars are scheduled to roll off the line. In Austria, the brand has been on the market since 2023.
This decision has triggered a large-scale investigation into state benefits and subsidies. Hungarian authorities have launched an investigation into state subsidies provided to the Chinese electric vehicle manufacturer BYD. The investigation stems from the appointment of former Foreign Minister Péter Szijjártó to a senior position at the company after his resignation, according to RBC-Ukraine, citing a Euronews report. What prompted the investig…
According to a Hong Kong newspaper, Chinese company executives fear that the BYD case could have a negative impact on other companies operating in Hungary.
Hungary probes BYD deal after ex-minister joins carmaker
As Hungary announced it would investigate subsidies given to the Chinese carmaker, Transparency International warned the hiring of an ex-minister who negotiated them could expose the state to Chinese corporate pressure.
The Hungarian government is going to investigate the deals that former Foreign Minister Péter Szijjártó concluded with the Chinese car manufacturer BYD. Szijjártó announced last week that he had traded his seat in the Hungarian parliament for a top job at BYD.
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