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Hungary’s New Government Tightens Scrutiny of Chinese Firms Over Environmental and Labor Concerns

Hungary’s newly elected TISZA government has adopted a markedly tougher stance toward Chinese companies, ending the preferential treatment they enjoyed under former Prime Minister Viktor Orbán. Since taking office after Orbán’s defeat in the April 2026 election, the new government has launched high-profile investigations into battery maker CATL and automaker BYD, signaling a broader shift toward stricter enforcement of environmental and labor regulations.

In June, Hungarian authorities initiated legal proceedings against CATL’s battery plant in Debrecen after it illegally discharged industrial wastewater into the municipal sewer system. Although the company completed remedial measures and issued a public apology, authorities revoked its wastewater pre-treatment permit, ordered a special investigation, and indicated that fines would follow. Local officials also raised concerns that hazardous chemicals, including the battery solvent N-methyl-2-pyrrolidone (NMP), may have been involved.

The government has also expanded environmental scrutiny to BYD’s new vehicle plant in Szeged. The move follows an April report by China Labor Watch alleging that thousands of Chinese migrant workers involved in the plant’s construction were subjected to excessive working hours, debt bondage, visa irregularities, and other exploitative labor practices. The allegations mirror similar concerns raised in Brazil, where authorities in 2024 rescued 220 Chinese workers from conditions officially classified as “slave-like.”

Source: Epoch Times, June 12, 2026
https://www.epochtimes.com/gb/26/6/11/n14786802.htm