Hungary Investigates Chinese BYD Investment Amid Ex-Minister’s New Role
Hungary's government launches an investigation into a significant Chinese investment by BYD carmaker following the former foreign minister's new position at the company.
POLICY WIRE — Budapest, Hungary — Hungarian authorities have initiated an investigation into a substantial foreign investment by Chinese automaker BYD Co. Ltd. This probe follows the recent appointment of Hungary’s former foreign minister, Péter Szijjártó, to a senior position at the company.
The investigation aims to scrutinize the circumstances and implications of the investment, particularly in light of Szijjártó’s new role. Szijjártó, who served as foreign minister from 2014 to 2023, joined BYD shortly after leaving office. His appointment has raised questions about potential conflicts of interest and the transparency of the investment process.
BYD, one of China’s leading electric vehicle manufacturers, announced plans to expand its operations in Hungary, including the establishment of a new manufacturing facility. The investment is part of BYD’s broader strategy to increase its presence in the European market.
Hungarian officials haven’t disclosed specific details about the nature of the investigation, citing the need to maintain confidentiality during the inquiry. However, sources indicate that the probe will examine the approval process for the investment, the terms of the deal, and any potential irregularities.
Szijjártó has defended his new position, stating that his role at BYD is focused on international relations and doesn’t involve any decision-making related to the investment. He emphasized that his appointment was made in accordance with legal — and ethical standards.
The investigation comes amid growing scrutiny of foreign investments in Hungary, particularly from Chinese companies. Critics have raised concerns about the influence of Chinese capital on Hungarian politics — and economy. The government has previously faced allegations of favoring Chinese investors over European Union partners.
In response to the investigation, BYD has issued a statement affirming its commitment to transparency and compliance with all relevant laws and regulations. The company expressed confidence that the inquiry will confirm the legitimacy of its investment in Hungary.
This development adds to the ongoing debate about foreign investment in Hungary and the balance between economic benefits and national security concerns. As the investigation progresses, all parties involved are expected to provide further clarification on the circumstances surrounding the deal.
Reporting by Policy-Wire (PW)
