Hungary's government has initiated an investigation into a substantial foreign investment by Chinese electric vehicle manufacturer BYD, following concerns over a potential conflict of interest involving former Foreign Minister Péter Szijjártó.
Prime Minister Péter Magyar announced Monday that the probe would scrutinize decisions, negotiations, and state commitments made by Szijjártó concerning BYD's investment in Hungary. Szijjártó, a close ally of former Prime Minister Viktor Orbán, resigned from Parliament last week to accept an executive position at BYD, the world's largest electric car producer.
Magyar stated that while in office, Szijjártó facilitated the investment with significant public funds, diplomatic backing, and state infrastructure. The investigation aims to review all subsidies, tax breaks, permits, environmental exemptions, and publicly funded investments granted to large multinational corporations during Orbán's premiership. The inquiry will seek to identify who made these decisions, how they were prepared, what professional warnings were disregarded, and the financial, environmental, and community burdens they may have imposed.
Neither Szijjártó nor BYD have publicly responded to the allegations of a conflict of interest. Szijjártó has described his new role as a significant opportunity to work with a company he considers a major success story in the automotive industry.
During his tenure as foreign minister, Szijjártó played a key role in attracting foreign investment to Hungary from Chinese companies, including BYD. In 2023, he announced that BYD would establish its first European factory in Hungary, a move that would allow the company to circumvent European Union tariffs on Chinese electric vehicles. The following year, it was announced that BYD would also locate its European headquarters and a research and development center in Budapest, with the support of approximately 20 billion forints ($63.7 million) in government assistance.
These investments were part of the Orbán government's broader strategy to position Hungary as a central hub for lithium-ion battery manufacturing, largely by attracting Chinese manufacturers. The expansion of this industry has drawn protests from local residents, environmentalists, and opposition politicians concerned about potential impacts on water resources, the environment, and Hungary's economic dependence on China.
Szijjártó's tenure also saw him maintain close ties with Russia, even after its full-scale invasion of Ukraine in February 2022. He frequently traveled to Moscow to negotiate energy agreements and meet with Russian Foreign Minister Sergey Lavrov. In 2023, reports emerged that Szijjártó had maintained regular contact with Lavrov during high-level EU meetings, which he has dismissed while acknowledging discussions about meeting agendas and decisions.