BYD hires Hungary's ex-foreign minister after $64M in subsidies

Hungary's former Foreign Minister Péter Szijjártó resigned from parliament Wednesday to take a senior executive role at Chinese electric vehicle giant BYD, capping a decade-long relationship in which he helped steer hundreds of millions of dollars in state subsidies to the company while in office.

Szijjártó, 47, said on Facebook he had accepted "a highly prestigious offer" from BYD and will serve as the executive responsible for the group's external relations and the development of new business lines. He served as Hungary's top diplomat for almost 12 years under former Prime Minister Viktor Orbán before the government lost April's election to Péter Magyar's pro-European Tisza party.

"The only difference from before is that from now on, Péter Szijjártó will not be paid by the Hungarian people for the same work, but by his actual employer," Magyar wrote on social media, accusing the former minister of having "long represented foreign interests" and lobbying for "massive Hungarian state subsidies" for BYD.

BYD is expected to begin assembling cars at its new factory in Szeged, southern Hungary, later this year — its first European production hub. Szijjártó played a central role in the 224 rounds of negotiations that brought the plant to Hungary in 2023, calling it "one of the largest investments in Hungarian economic history." The government provided undisclosed financial incentives for the factory, and in 2025 Szijjártó announced BYD would also locate its European headquarters and a research and development center in Budapest, receiving 20 billion forints ($63.7 million) in government assistance.

A decade of deepening China ties

Szijjártó's move is the latest sign of BYD's strategy to embed itself politically in Europe as it expands beyond China. The Shenzhen-based company, which surpassed Tesla as the world's top EV seller by volume, has prioritized Hungary as its gateway to the European Union, allowing it to bypass EU import tariffs on Chinese-made EVs that were imposed to protect the bloc's domestic auto industry.

During his tenure, Szijjártó and Orbán opposed those tariffs, courted Chinese investment and opened a series of Chinese EV battery plants across Hungary. The government also jointly developed a rail corridor between Hungary and Serbia as part of China's Belt and Road Initiative. Szijjártó maintained similarly close ties with Moscow, frequently traveling to Russia after its full-scale invasion of Ukraine to negotiate oil and gas deals, and was awarded the Russian Order of Friendship by President Vladimir Putin in 2021.

Szijjártó is not the only European politician making the leap into the automotive business. Former German Finance Minister Christian Lindner, who left politics after his party's election defeat, is set to become chief executive of Germany's largest car dealer, Autoland AG, in 2027.

What it means for BYD's European ambitions

BYD's hiring of a former foreign minister with deep government connections gives the company an insider who understands EU regulatory dynamics, tariff negotiations and subsidy structures — advantages that could prove decisive as European policymakers debate further trade measures against Chinese EV imports. The company's ability to leverage political relationships has been central to its rapid overseas expansion, and Szijjártó's appointment signals BYD intends to double down on that approach.

For European automakers already struggling with BYD's cost advantage — its Blade battery using LFP chemistry is estimated at roughly $56 per kilowatt-hour, well below the industry average — the prospect of a politically connected BYD navigating EU trade barriers adds another layer of competitive pressure. BYD's European expansion comes as the company faces slowing domestic demand and intensifying price wars in China's EV market, where average selling prices have fallen by double-digit percentages over the past two years.

This article is for informational purposes only and does not constitute investment advice.