A forced labor investigation at China's BYD automotive factory in Szeged, Hungary exposes deepening fissures within Central Europe over Chinese investment, testing whether the European Union can enforce labor standards against economic pragmatism.
<link url='https://theworld.org/stories/2026/03/31/chinese-ev-giant-byd-faces-forced-labor-investigation-at-hungary-factory'>China Labor Watch</link>, a US-based nonprofit, documented widespread labor violations at the facility through covert interviews with 50 workers, finding clear indicators of forced labor including excessive overtime, seven-day work weeks, and systematic wage withholding.
Workers described 9-10 hour daily shifts escalating to 12-14 hours during peak periods, with some logging 30-31 consecutive days without rest. The investigation found that 20-30 percent of wages were withheld and deposited in Chinese bank accounts, with workers threatened if they departed early.
The Csongrád-Csanád County labor office has launched an investigation following the allegations. China Labor Watch also notified the European Commission and European Parliament of its findings.
The plant, which began trial production in January, represents Hungary's uncritical embrace of Chinese investment that contrasts sharply with approaches in Prague and Warsaw. BYD strategically located the facility to circumvent EU tariffs on Chinese electric vehicles, after overtaking Tesla as the world's top EV seller in 2025.
Similar violations emerged at BYD's Brazil facility last year, where labor authorities found human trafficking allegations at the Camaçari plant. The pattern suggests systemic labor practices rather than isolated incidents.
In Central Europe, as we learned from the Velvet Revolution, quiet persistence often achieves more than loud proclamations. Yet Hungary's government under Viktor Orbán has pursued Chinese investment with minimal scrutiny, creating what observers call a for Beijing's industrial ambitions.
