A recent report by human rights organizations has unveiled troubling evidence regarding BYD, a major Chinese car manufacturer, and its first electric vehicle factory in Europe. This project, initially endorsed by former Hungarian Prime Minister Viktor Orbán, allegedly subjects Chinese migrant workers to various forms of abuse and forced labor, as indicated by a company statement on Tuesday.
This isn’t the first instance where BYD has been accused of mistreating Chinese migrant workers overseas, especially in Brazil.
BYD, known as China’s leading automaker, has deep connections to the Chinese Communist Party. In April, the New York-based human rights group China Labor Watch (CWL) spotlighted serious issues at BYD’s factory in Szeged, Hungary. The report claims these workers face grueling seven-day work weeks, are preyed upon for debt collection, endure excessive overtime, and fall victim to visa fraud—all violations of EU labor laws.
CWL has spent years investigating harsh labor conditions in Chinese factories and has validated claims against BYD through testimonies from over 50 workers at the Szeged site. Some interviewed reported that the living quarters are overcrowded, with more than 450 individuals crammed into a single dormitory.
Concerns regarding health risks at the factory have also been raised by local residents. An anonymous doctor noted to a news outlet that some migrant workers are receiving treatment for tuberculosis. Additionally, the safety of employees is under scrutiny, especially after a BYD representative confirmed that a worker died in a crane accident earlier this year.
Moreover, some workers stated they were recruited through contractors who charged exorbitant fees, a situation that resembles debt bondage for individuals from lower-income areas in China. According to their accounts, the fees would be returned upon completing a year of continuous work. However, those attempting to leave early reportedly risk losing their fees and having to pay back their recruiters for their transportation costs to Hungary.
BYD has faced similar scrutiny in Brazil, where it was effectively blacklisted for engaging in practices akin to modern slavery. In 2024, Brazilian authorities halted work on an electric car factory after rescuing 163 Chinese workers subjected to labor conditions deemed inhumane. Although a legal injunction prevented a formal blacklisting, concerning reports regarding the factory’s conditions are still accessible.
Brazilian prosecutors have filed similar charges against BYD’s operations in Hungary. The investigation revealed that the company engaged Chinese labor through contractors, who withheld a substantial portion of their wages and passports, coercing them into unfair labor under threat.
A spokesperson for the European Commission affirmed awareness of the situation and the ongoing legal matters pursued by Hungarian authorities. In contrast, a BYD representative claimed that the company places “the highest priority on protecting workers’ rights and ensuring compliance with Hungarian and European laws.”
The Szeged facility is slated to begin vehicle production trials this year, with full-scale operations expected to commence by 2027 after an investment exceeding $4.5 billion. In the initial announcement regarding the factory’s construction, BYD indicated its intention to make Hungary the focal point of its European operations.
Former Prime Minister Orbán has actively supported the influx of Chinese companies into Hungary. In May 2025, he proudly mentioned BYD’s plans to set up its European headquarters in Budapest, emphasizing the importance of strategic cooperation with China in leading technological advancements in the industry. Orbán’s government has consistently rejected suggestions to distance itself from China, labeling such calls as a “red line.”
