Budapest, Hungary – Hungary’s government announced an investigation Monday into a major foreign investment by Chinese electric carmaker BYD, which had been negotiated by a former minister who recently resigned from Parliament to accept an executive role at the company.
Péter Szijjártó’s announcement last week that he was joining the world’s top electric vehicle manufacturer triggered accusations of a conflict of interest and raised concerns about his involvement in securing significant government subsidies for the firm during his tenure.
Prime Minister Péter Magyar informed lawmakers on Monday that Szijjártó had played a key role in facilitating the BYD Hungary investment while in office, using “hundreds of billions (of forints) in public funds, diplomatic backing, and state infrastructure.”
“Our investigation will review all decisions, negotiations, and state commitments made by Péter Szijjártó that were connected to the BYD Hungary investment,” Magyar stated.
He also confirmed the probe would examine subsidies, tax incentives, permits, environmental exemptions, and publicly funded investments extended to multinational corporations during Prime Minister Viktor Orbán’s leadership.
“We will identify who made these decisions, who developed the plans, what professional advice was disregarded, and the total financial impact on Hungarian taxpayers, workers, local communities, and the environment,” Magyar emphasized.
Neither Szijjártó nor BYD has responded to Hungarian officials’ allegations of improper conduct during his time in public office. Szijjártó defended his new position as a “prestigious opportunity” with “one of the most remarkable success stories in automotive manufacturing.”
During his time in government, Szijjártó was a key negotiator for Chinese investments in Hungary, particularly those involving BYD, which received substantial public support under his oversight.
In 2023, Szijjártó announced BYD’s plan to establish its first European factory in Hungary, enabling the company to avoid EU tariffs on Chinese-made electric vehicles designed to safeguard the bloc’s domestic auto industry.
In 2025, Szijjártó revealed that BYD would set up its European headquarters and an R&D center in Budapest, receiving a 20-billion-forint ($63.7 million) government grant for the initiative.
These investments aligned with Orbán’s government strategy to position Hungary as a global center for lithium-ion battery manufacturing, drawing Chinese companies to establish production facilities across the nation.
Local residents, environmental groups, and opposition parties have protested against the expansion, fearing it will worsen environmental degradation, strain water resources, and deepen economic dependence on China.
As Hungary’s foreign minister, Szijjártó also cultivated strong ties with Russia, frequently meeting with Russian Foreign Minister Sergey Lavrov and even hosting EU-Russian negotiations from Moscow. During the 2026 Hungarian election campaign, the *Washington Post* reported he was exchanging live updates with Lavrov during EU meetings about discussions in progress.
Szijjártó denied the report but confirmed he had discussed EU meeting agendas with Lavrov before and after official meetings.
During a recent government press briefing, Magyar hinted at an ongoing investigative effort into Szijjártó’s ties with the Russian government, though he did not disclose further details.