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cross-posted from: https://scribe.disroot.org/post/10248591

Hungary’s government announced an investigation Monday into a large foreign investment by Chinese automaker BYD negotiated by a former foreign minister who last week resigned from Parliament to take an executive position at the company.

[Former foreign minister] Péter Szijjártó’s announcement last Wednesday that he would take the job at the world’s top electric carmaker prompted accusations of a conflict of interest and criticism over his role in facilitating substantial government subsidies to the company while in office.

Prime Minister Péter Magyar told lawmakers on Monday that Szijjártó, a close ally of former Prime Minister Viktor Orbán, had helped BYD while he was in office “with hundreds of billions (of forints) in public money, diplomatic support and state infrastructure.”

“We will examine all the decisions, negotiations and state commitments made by Péter Szijjártó that were related to the BYD Hungary investment,” Magyar said Monday.

He added the investigation would look into all subsidies, tax breaks, permits, environmental exemptions and publicly-funded investments given to large multinational firms during Orbán’s tenure.

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While serving in government, Szijjártó was instrumental in securing foreign investments in Hungary from Chinese companies, including his now-employer BYD, which received considerable state subsidies during his tenure.

In 2023, Szijjártó announced that BYD would open its first European factory in Hungary — allowing the conglomerate to skirt European Union import tariffs on Chinese electric vehicles imposed to protect the continent’s domestic auto manufacturing sector.

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The investments were part of the Orbán government’s push to make Hungary a global hub of lithium-ion battery manufacturing, largely through attracting Chinese battery manufacturers who opened a series of plants across the country.

The moves led local residents, environmentalists and opposition politicians to protest over fears the new industry would exacerbate existing environmental problems, hit the country’s precious water supplies and further undermine its economy to China.

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BYD has also been facing allegations of forced labour as a second worker in its Hungary plant died in June 18 ... This incident is not the first fatal accident linked to the construction of BYD’s flagship Hungarian investment. In February, another worker died at the site. Following that incident, authorities launched an investigation on suspicion of negligent endangerment resulting in death in the course of employment.

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While foreign minister, Szijjártó also maintained close relations with Russia despite its full-scale invasion of Ukraine on Feb. 24, 2022. Breaking with nearly all of his EU counterparts, he frequently traveled to Moscow to negotiate agreements on purchasing Russian oil and gas and to meet with Russian Foreign Minister Sergey Lavrov, whom he referred to as his “friend.”

He was embroiled in controversy during Hungary’s 2026 election campaign when the Washington Post reported that he made regular phone calls to Lavrov during high-level EU meetings with “live reports on what’s been discussed.”

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During a government news conference last week, Magyar said that “as far as I know,” an investigation had been launched concerning Szijjártó’s connections to the Russian government.

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