Hungary Investigates Deal with China’s BYD After Ex-Foreign Minister Takes Job There

The appointment of Peter Szijjarto, Hungary’s former foreign minister and a close ally of Viktor Orban, as an executive at Chinese electric carmaker BYD has sparked widespread criticism. Critics argue that Szijjarto’s move raises serious concerns about conflict of interest, given his pivotal role in securing hundreds of billions of forints in public money, diplomatic support, and state infrastructure for the company while in office.

The investigation launched by Prime Minister Peter Magyar into the deal is a welcome development. However, it also raises questions about the motivations behind such an inquiry. Was this merely a knee-jerk reaction to Szijjarto’s decision, or was there something more at play? Hungary has long been courting Chinese investment, with Orban’s government actively seeking to deepen ties with Beijing.

Szijjarto’s departure from politics and his subsequent appointment at BYD have also sparked debate about the influence of big business in Hungarian politics. As Magyar pointed out, Szijjarto was instrumental in securing hundreds of billions of forints in public money, diplomatic support, and state infrastructure for the company during its time in Hungary. This raises serious questions about the extent to which government decision-making is beholden to corporate interests.

The deal also highlights the growing influence of China on global markets. As the world’s top electric carmaker, BYD represents a significant player in the automotive sector, and its expansion into Europe has been rapid. This raises questions about the implications for EU competition policy and the potential risks associated with Chinese state-led investment.

Hungary’s willingness to court Chinese investment is also a pragmatic response to its economic predicament. The country has faced significant economic challenges in recent years, including a recession triggered by the pandemic and a deteriorating relationship with the European Union. In this context, Hungary’s efforts to secure foreign investment can be seen as a necessary measure to boost its economy.

However, critics argue that such practices undermine public trust in government institutions and create an environment conducive to corruption. The BYD deal also highlights the challenges faced by EU member states in balancing their economic interests with their democratic values and principles.

The investigation into the deal will need to be transparent and thorough if it is to restore public trust in Hungary’s government. Any attempt to sweep this under the rug or dismiss the allegations as mere “politics” would be a grave mistake.

The involvement of BYD in Hungarian politics has been marked by controversy from the start. Critics have long accused the company of using its influence to secure favorable treatment, including subsidies and tax breaks. Szijjarto’s role in facilitating this process has only added to the criticism. Hungary is not alone in facing such challenges; other EU member states have also struggled with the impact of big business on their politics.

The recent scandals surrounding the European Parliament’s relations with corporate lobbyists are a case in point. The BYD deal serves as a stark reminder of the challenges faced by the EU in regulating its relationships with corporations and ensuring that public interests are protected.

The lasting impact of Viktor Orban’s tenure as Prime Minister is also evident in the BYD deal. His government has been marked by a relentless pursuit of authoritarianism and a disregard for democratic norms, leading to strained relationships with EU institutions and a deepening sense of unease among Hungarian citizens. Szijjarto’s departure from politics and his appointment at BYD can be seen as the latest manifestation of this trend.

As the investigation into the deal unfolds, it will be essential to keep a close eye on those who are watching over them. The Hungarian government has a history of stonewalling and obfuscating when faced with criticism or scrutiny. It remains to be seen whether this time will be different.

The BYD deal represents a complex web of interests, motivations, and implications that extend far beyond Hungary’s borders. As we watch this story unfold, it is essential to keep our eyes open to the broader patterns at play – patterns that speak to the very heart of democracy and the role of big business in shaping our politics.