The former Hungarian foreign minister who led the country's efforts to attract investment from Chinese electric vehicle company BYD has recently taken a senior position at the company, sparking controversy. The Hungarian government has decided to investigate the subsidies and various benefits provided during the investment process.
According to the South China Morning Post on July 21, Hungarian Prime Minister Péter Márki-Zay stated in parliament the previous day that "former Minister Péter Szijjártó mobilized hundreds of billions of forints in public funds, diplomatic support, and national infrastructure to assist BYD." He added, "We will investigate all decisions, negotiations, and national commitments he made regarding BYD's investment in Hungary."
The investigation will focus on government subsidies, tax benefits, various permits, environmental regulation relaxations, and infrastructure projects funded by the state.
Márki-Zay emphasized, "We will determine who made these decisions, who prepared them, and what professional warnings were ignored. We will also clarify the burden this has placed on taxpayers, workers, communities, and the environment."
This investigation follows Szijjártó's announcement on social media on July 15 that he would resign from his parliamentary position to join BYD as an executive. He described the role as a "honorable opportunity" to work for one of the most successful companies in the automotive industry, responsible for external relations and new business development.
The transition of a former foreign minister to a BYD executive has raised concerns about potential conflicts of interest.
There are also worries regarding security issues. The Nihon Keizai Shimbun reported that since Szijjártó had access to confidential diplomatic information during his tenure, there are concerns that sensitive information related to the European Union and other matters could be leaked to China. According to Chinese law, private companies cannot refuse to provide information related to national security if requested by the government.
Szijjártó served as foreign minister for about 12 years under former Prime Minister Viktor Orbán and was active in attracting investments from China. He played a key role in bringing BYD's first European production facility to Hungary in 2023, which is seen as a strategic site to bypass additional tariffs imposed by the European Union on Chinese electric vehicles.
In 2025, BYD announced plans to establish its European headquarters and research and development center in Budapest, with the Hungarian government promising 20 billion forints (approximately $934 million) in financial support.
The Orbán government has pursued a strategy to develop Hungary into a European battery production hub by attracting Chinese battery and electric vehicle companies. However, there has been significant opposition from residents, environmental groups, and the political opposition, citing concerns over pollution, water resource depletion, and increased dependence on China.
* This article has been translated by AI.
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