Hungary investigates deal with China's BYD carmaker after ex-foreign
minister takes job there
[July 21, 2026] By
JUSTIN SPIKE
BUDAPEST, Hungary (AP) — 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.
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.
"We will investigate who made these decisions, who prepared them, what
professional warnings were ignored, and how much burden they left on
Hungarian taxpayers, workers, local communities and the environment,”
Magyar said.
Neither Szijjártó nor BYD have responded to Magyar's allegations of
conflict of interest while Szijjártó was in office. The former foreign
minister has posed his new job as a “prestigious” opportunity to work
for one the "greatest success stories” in the automotive industry.
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.
[to top of second column] |
Hungarian Prime Minister Peter Magyar holds an extraordinary press
briefing following a voting on the 17th amendment to the Fundamental
Law in the parliament building in Budapest, Hungary, Monday, July
13, 2026. (Tamas Purger/MTI via AP)
 In 2025, Szijjártó also announced
BYD would locate its European headquarters and a research and
development center in Budapest and receive 20 billion forints ($63.7
million) in government assistance.
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.
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.”
Szijjártó has dismissed the report while acknowledging that he
conferred with Lavrov before and after EU foreign minister meetings
about their agenda and decisions.
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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