Hungarian government examines Chinese BYD's investments and former minister's post

According to the news of Japan-based Nikkei Asia newspaper, the Magyar government, which prioritizes improving relations with the European Union (EU), is examining more closely the investment agreements made with China and other countries during the reign of former Prime Minister Viktor Orban.

Hungarian Foreign Ministry officials reported at the end of July that the previous government had promised BYD a significant amount of undisclosed incentives and reached an agreement to accept approximately 10 thousand Chinese workers into the country.

BYD, which established its European headquarters in Hungary, is planned to start production this year at its electric vehicle factory in Szeged.

Allegations of long working hours and unpaid overtime were also brought to the agenda regarding the working conditions in the construction of the factory.

New York-based non-governmental organization China Labor Watch reported that some Chinese workers it interviewed were working "up to 14 hours a day, 7 days a week."

Former Minister of Foreign Affairs being a manager of BYD is subject to investigation

Peter Szijjarto, the former Minister of Foreign Affairs of the Orban period, resigned from his seat as a member of parliament in July and became a director of BYD, which also caused controversy.

It was stated that Szijjarto, who was claimed to have negotiated the terms of BYD's investment in Hungary while he was in office, may be subject to investigation within the scope of a possible conflict of interest. Magyar had announced that incentives, tax reductions, permits and public infrastructure works related to BYD investment would be examined.

On the other hand, according to the news of EV, which publishes on the electric vehicle sector, it was determined that BYD transported soil from the factory site to approximately 20 hectares of agricultural land without having the necessary tests. An investigation was launched after contaminants were found in a part of the soil.

Later tests determined that the pollution was not above legal limits, but the company was fined 10 million Hungarian forints. It was reported that the investigation is continuing.

BYD Vice President Stella Li stated that the company complies with local rules and remains committed to the factory investment.

The Magyar government has also begun removing facilities provided to battery factories that violate environmental rules. In this context, various Chinese companies were fined, citing regulations regarding the storage of hazardous waste and environmental violations.