On Monday, July 20, the Hungarian government announced that it would investigate a major investment project by Chinese automaker BYD in the country. The investment project, negotiated by former Foreign Minister Péter Szijjártó, who immediately took on an executive role in BYD after resigning from his parliamentary position last week.
Last Wednesday, Szijjártó announced his appointment to an executive position at BYD, sparking speculation and criticism over potential conflicts of interest, as he had previously facilitated significant subsidies from the Hungarian government to BYD during his tenure as foreign minister.
Prime Minister Péter Magyar told lawmakers on Monday that as a close ally of former Prime Minister Viktor Orbán, Szijjártó had utilized “billions of forints in public funds, diplomatic support, and national infrastructure” to assist BYD during his term.
Magyar stated, “We will review all decisions, negotiations, and national commitments made by Szijjártó related to BYD’s investment project in Hungary.”
He added that the investigation would also encompass all subsidies, tax exemptions, permits, environmental waivers, and public fund investments provided to large multinational companies during Orbán’s administration.
“We will investigate who made these decisions, who was responsible for the preparations, what professional warnings were ignored, and how much burden these decisions have left on Hungarian taxpayers, workers, local communities, and the environment,” Magyar said.
Both Szijjártó and BYD have not responded to the accusations of conflicts of interest during Szijjártó’s tenure. The former foreign minister described his new role as an “enviable” opportunity to work for “one of the most successful companies” in the automotive industry.
During his government service, Szijjártó played a crucial role in facilitating investments by Chinese companies, including his current employer BYD, in Hungary, and BYD received substantial government subsidies during his tenure.
In 2023, Szijjártó announced that BYD would open its first European factory in Hungary, enabling the company to circumvent EU import tariffs on Chinese electric cars aimed at protecting the European automotive industry.
He also announced that BYD would establish its European headquarters and research and development center in Budapest in 2025, receiving 200 billion forints (approximately $6.37 million) in government assistance.
This move has sparked protests from local residents, environmentalists, and opposition politicians who are concerned that the emerging industry could exacerbate existing environmental issues, threaten the country’s valuable water resources, and further subject its economy to Chinese influence.