Hungary's government has announced a formal investigation into state subsidies provided to Chinese electric vehicle manufacturer BYD, following the appointment of former foreign minister Péter Szijjártó to a senior role at the company. The move has reignited concerns over conflicts of interest and the so-called revolving door between public office and private sector positions.
Prime Minister Péter Magyar confirmed the probe on Monday, stating that his administration would scrutinise all decisions, negotiations, and state commitments made by Szijjártó that were linked to BYD's investment in Hungary. “We will examine all the decisions, negotiations and state commitments made by Péter Szijjártó that were related to the BYD Hungary investment,” Magyar said. The investigation will also review subsidies, tax breaks, and permits granted to large multinational firms under the previous government of Viktor Orbán.
Szijjártó, who served as foreign minister for 12 years until May, resigned his parliamentary seat to join BYD as an executive responsible for external relations and the development of new business lines. In a Facebook post, he described the offer as “highly prestigious” and noted BYD’s status as one of the automotive industry’s greatest success stories over the past two decades.
BYD is building its first European factory in Szeged, southern Hungary, a strategic move that allows the company to bypass European Union import tariffs on Chinese electric vehicles. The Orbán government had actively courted Chinese investment, positioning Hungary as a hub for EV manufacturing and offering incentives to several Chinese battery plants.
Revolving Door Concerns
Transparency International Hungary has criticised Szijjártó’s transition from government to BYD as a textbook example of the revolving door phenomenon. Miklós Ligeti, the organisation’s legal director, told Euronews that the former minister’s deep knowledge of Hungary’s administrative and political systems could expose the state to undue influence. “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 noted that it remains unclear whether Szijjártó’s appointment constitutes a reward for decisions made in office that favoured BYD. 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 leaving office, a gap that critics say facilitates such transitions.
Magyar’s party came to power after a landslide victory in April, ousting Orbán’s long-standing government. The prime minister has pledged to investigate not only Szijjártó’s role at BYD but also the broader decision-making process under the previous administration. “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’s expansion in Hungary has also drawn criticism from environmental and labour rights NGOs, which have raised concerns over suspected breaches of standards. The company’s factory in Szeged is expected to create thousands of jobs, but activists argue that the incentives offered by the Hungarian state may come at a high cost to public finances and local communities.
The investigation comes amid broader scrutiny of foreign investment in Europe, particularly from Chinese firms. The European Union has been tightening rules on state aid and foreign subsidies, and Hungary’s case could set a precedent for how member states handle potential conflicts of interest in large-scale investment deals.
