Hungarian authorities have launched a broad investigation into state support granted to Chinese electric vehicle manufacturer BYD, placing former Foreign Minister Péter Szijjártó under scrutiny over his role in securing the company's investments before accepting a senior position at the automaker.

The investigation comes shortly after Szijjártó stepped down from parliament to join BYD as a senior executive responsible for international affairs and business development. His transition from overseeing the company's investments as a government official to taking a leadership role within the firm has triggered allegations of a potential conflict of interest.

Prime Minister Péter Magyar said the inquiry will examine every government decision linked to BYD's expansion in Hungary, including financial incentives, tax benefits, infrastructure support, environmental exemptions and licensing procedures.

Government to review state incentives

Speaking in parliament, Magyar said investigators will assess how decisions were made, whether official concerns were ignored and what impact the projects have had on taxpayers, workers, local communities and the environment.

The review will also revisit investment incentive policies introduced under former Prime Minister Viktor Orbán, whose government actively promoted Chinese investment as part of its industrial development strategy.

Neither Szijjártó nor BYD has publicly responded to the investigation or the conflict-of-interest allegations.

Key architect of Chinese investment

Szijjártó served as Hungary's foreign minister for nearly 12 years and was widely regarded as the government's leading advocate for attracting Chinese investment.

In 2023, he announced that BYD had selected Hungary for its first European manufacturing plant after lengthy negotiations with the government. While the project was presented as a major milestone for the country's automotive industry, the value of the incentives offered to the company was never made public.

Two years later, Szijjártó revealed that BYD would establish its European headquarters and a research and development center in Budapest, supported by 20 billion forints (approximately $63.7 million) in government funding.

China strategy faces growing scrutiny

The BYD investments formed a central pillar of the Orbán administration's strategy to transform Hungary into a European hub for electric vehicle and battery production through closer economic cooperation with China.

The policy, however, drew sustained criticism from opposition parties, environmental organizations and local residents, who argued that the projects could place additional pressure on water resources, increase environmental risks and deepen Hungary's economic dependence on Beijing.

Separate inquiry linked to Russia

Magyar also stated that authorities have reportedly launched a separate investigation into Szijjártó's contacts with Russia.

Throughout his tenure, Szijjártó maintained close diplomatic ties with Moscow despite the Russia-Ukraine war and held frequent meetings with Russian Foreign Minister Sergey Lavrov. During the 2026 election campaign, media reports alleged that he shared information from meetings of EU foreign ministers with Lavrov. The former minister denied leaking confidential information, while confirming that he regularly communicated with his Russian counterpart before and after some diplomatic meetings.(ILKHA)