On July 20 local time, the Hungarian government announced that it would investigate a major investment made by Chinese automaker BYD in the country.
According to the Associated Press, the investment investigated in Hungary was led by former Foreign Minister Gyorgay Sándor. He resigned as a parliamentarian last week and is set to take up a position at BYD.
Hungary's Prime Minister Gyorgy Matei stated in the parliament on the 20th that Sajdó, as a close ally of former Prime Minister Orban, ‘we will review all decisions, negotiations, and national commitments made by Sajdó regarding the BYD Hungarian investment project.’
He revealed that the investigation scope is not limited to the BYD project alone, but also covers various government support measures provided to large multinational companies during Orbán’s tenure, including financial subsidies, tax incentives, administrative approvals, environmental exemptions, and infrastructure investments funded by public funds.
Since 2002, Sajdó has been re-elected as a member of the Hungarian National Assembly. From 2014 to 2026, for approximately 12 years, Sajdó served as Minister of Foreign Affairs in Orbán's government. On the 15th of this month, Sajdó posted on social media announcing that he had officially submitted his resignation from his seat in the National Assembly. He will begin working at BYD starting today, serving as the person in charge of the company's external relations and new business development efforts.
It is reported that during his tenure as Hungarian Foreign Minister, Sajdó has actively promoted investments by Chinese companies in Hungary, including BYD's investment there. These investments are also part of the Ollan government's strategy to develop Hungary's new energy vehicle industry. Many Chinese new energy manufacturers have chosen to establish factories in Hungary under this strategy.
In 2023, Siyaardo announced that BYD will build its first European vehicle factory in Hungary. In 2024, BYD began construction of its first European electric vehicle production plant in the southern Hungarian city of Szeged. In 2025, BYD announced that it will relocate its regional operations and R&D center from the Netherlands to Budapest, Hungary.
However, in the parliamentary elections held in April this year, the Erdoğan camp suffered a major defeat, and the Tisza Party led by Mátyás Szách was elected to power. At that time, public opinion predicted that investments by Chinese companies in Hungary might face obstacles.
Shanghai Academy of Social Sciences International Studies Institute's European Research Office Deputy Director Dai Yichen previously told The Paper that opposition parties such as the Tisa Party have used issues like the transparency of some Sino-Hungarian cooperation projects during the election campaign to attack Orbán's government, accusing it of 'selling off national sovereignty'. In 2025, Hungarian courts ruled several times that the National Debt Management Center must disclose details of contracts for Chinese loans.
Meanwhile, the Thyssen Party also criticized the Öcalan government for aggressively attracting foreign investment into the battery industry. This not only risks making the country's economy too reliant on a single sector, but also raises concerns among local governments and citizens regarding environmental compliance issues, the displacement of local workers by foreign technicians, and the increase in prices. In response, the Thyssen Party promised to establish an independent environmental department once in power to strengthen compliance checks in the battery industry.
Dai Yichen believes that, judging from these campaign promises, the TiSA Party lacks the geopolitical intention to balance the EU through implementing a 'eastern strategy'. In terms of its policy towards China, there is a growing motivation to return to the mainstream stance of the EU. The party will place greater emphasis on the transparency of funds and compliance reviews for Chinese-funded projects.
Regarding speculation from the outside world, Márai said at a press conference on April 13 that he is open to Chinese investment, but he also sets clear conditions: foreign companies must strictly comply with Hungarian and EU regulations regarding environment, health, and occupational safety, and they must bring real benefits to the Hungarian economy.
Mao Jiao said, "We certainly have the right to review these investment projects, but the purpose is not to block or prevent the implementation of these projects."
He said, “We hope to make local Hungarian companies partners of BYD, CATL, and other major investors. I believe that we will definitely achieve mutually beneficial cooperation.”
Regarding the changes in the Hungarian political situation, Guo Jiaqun, a spokesman for the Chinese Ministry of Foreign Affairs, stated during a regular press conference on April 13 that China congratulated the Tisza Party led by Mátyás on their victory in the elections. China attaches great importance to the development of relations between China and Hungary. It is willing to strengthen high-level exchanges with the new Hungarian government based on mutual respect, equality, and mutual benefit and win-win outcomes. China also wishes to enhance political trust, expand practical cooperation, and increase cultural exchanges, all for the benefit of the people of both countries.
After Mágha Színhöz was elected, the columnist Yang Zhi of Observer Network stated that the possible future direction of China-Hungary relations is a decline from "special partners" to "ordinary relations". A more accurate description might be: Hungary has changed from being an "oddity within the EU" to becoming a "constant within the EU", and China needs to adapt to this new normal and prepare in advance to prevent and respond to it. Budapest's position in the Sino-US-EU triangular relationship may shift from being "clearly biased towards Beijing" to being "more balanced between the two."
