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Hungary has announced an investigation into state subsidies granted to Chinese electric carmaker BYD after a former foreign minister, Péter Szijjártó, resigned his parliamentary seat to join the company.
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Szijjártó’s move has raised conflict of interest concerns given that he negotiated state subsidies for the carmaker during his time in government.
“We will examine all the decisions, negotiations and state commitments made by Péter Szijjártó that were related to the BYD Hungary investment,” Prime Minister Péter Magyar said on Monday.
The investigation will examine all subsidies, tax breaks and permits granted to large multinational firms under the government of Viktor Orbán.
Magyar’s party ousted Orbán’s government after a landslide election victory in April, and Szijjártó’s term as foreign minister ended in May after 12 years in government. He posted on Facebook when he had received “a highly prestigious offer” from the world’s leading electric carmaker “to fill an international position”.
“BYD is one of the greatest success stories in the automotive industry over the past 20 years,” Szijjártó wrote. “Starting today, I will continue to work as the executive responsible for the group’s external relations and the development of new business lines.”
According to Magyar, the investigation will examine not just Szijjártó’s appointment at BYD but his role in the previous government, where he was responsible for attracting foreign investment.
“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.
BYD is building its first European factory in Szeged, Hungary, allowing the company to avoid the European Union’s import tariffs on Chinese electric vehicles.
The company’s expansion in Hungary has been criticised by environmental and labour rights NGOs over suspected breaches of standards. The Orbán government had sought to position Hungary as a global hub for electric vehicle manufacturing, offering investment aid to several Chinese battery plants as well.
Influence and pressure
Miklós Ligeti, legal director at Transparency International Hungary, told Euronews that Szijjártó’s move to BYD was a textbook case of a “revolving door” relationship – the movement of senior officials and politicians into lobbying or executive roles in the private sector.
“We are witnessing a revolving door phenomenon in broad daylight, which we condemn,” Ligeti said. “Given that Szijjártó, a long-serving minister, has extensive knowledge of how Hungary works, this could expose vulnerabilities that boost BYD’s ability to influence – or even pressure – the Hungarian government in future business dealings.”
Ligeti said it remains unclear whether Szijjártó’s move to BYD amounted to a form of reward for decisions he made in office that favoured the Chinese company. However, he welcomed the government’s investigation as a “promising development”.
Hungary currently has no legal requirement for a “cooling-off period” for ministers after they leave office to prevent them transitioning straight into government-facing private sector positions.
Szijjártó was widely regarded as a pro-China figure during his time as minister. In addition to securing the BYD factory and several battery plants, he also negotiated the Belgrade–Budapest railway project, a key element of China’s Belt and Road Initiative.