cross-posted from: https://scribe.disroot.org/post/11364596
Hungary’s new government is introducing new framework conditions for the country’s strongly represented Chinese battery and electric vehicle industry. Since taking office in May, the government led by Prime Minister Péter Magyar has sought to tighten environmental and labour standards, as well as make state funding agreements more transparent. Individual investment projects agreed under the government of Viktor Orbán are now to be re-examined.
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Details of agreements made by the previous government [included] promised state support and the possibility of employing around 10,000 Chinese workers. Additionally, working conditions at the construction site of the new BYD plant have come under fire. Citing interviews with Chinese workers, the organisation China Labor Watch reports that working hours have reached up to 14 hours a day, seven days a week.
Another politically sensitive issue is the move of former Foreign and Trade Minister Péter Szijjártó to BYD. Under Orbán, he played a key role in negotiating the automaker’s settlement in Hungary and joined BYD in July as head of external relations and development of new business areas. The Magyar government now also intends to review the subsidies, approvals, and state commitments associated with the settlement.
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Battery factories that violate environmental regulations will no longer receive preferential treatment in approval procedures. In addition, the government plans to establish a new authority to monitor environmental compliance in battery plants. This authority will conduct on-site inspections and, in the event of violations, will also be able to order production stops.
One focus is on CATL with its new battery plant in Debrecen … At the end of August, the Hungarian occupational safety authority temporarily suspended work in three areas of the cell production building. Previously, elevated nickel exposure had been detected in nine employees – and, during a subsequent inspection, the authority also criticised protective equipment.
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In June, the authorities had revoked the operating licence of the Chinese battery separator manufacturer Semcorp after elevated metal concentrations were detected in the groundwater at its plant in Debrecen.
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Under Orbán, Hungary had actively promoted Chinese investments in the country’s electric vehicle and battery industry. During a meeting with Chinese President Xi Jinping in 2024, both countries agreed to further expand cooperation in this area. The new Magyar government is now placing greater emphasis on compliance with environmental, labour, and transparency standards. However, it has not yet announced a fundamental withdrawal from economic cooperation with China.
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