Chinese companies in Hungary scramble to adjust to post-Orban era
BYD tells builders of Hungarian factory to abide by labour laws as new government adopts stricter approach to foreign investment
Electric vehicle giant BYD has ordered contractors building its Hungarian factory to sign pledges to comply with the country’s labour laws – part of a broader scramble by many Chinese companies as a new government in Budapest vows to crack down on illegal practices by foreign firms.
BYD’s Compliance Declaration on Overseas Employment requires contractors to commit to following Hungarian laws on payment of wages, working hours, visas, medical insurance and labour management.
It was sent to its contractors in Hungary roughly three weeks ago, a source said, who added that BYD had also introduced advance-approval requirements for business visa holders on site to make sure no one was working illegally.
The new Hungarian government, sworn in last week, vowed to adopt a stricter approach to foreign investment than that of former prime minister Viktor Orban, in which foreign companies were widely seen as operating with fewer constraints.
“We will build a Hungary where investors, every investor, respects our laws, our environment, our workers, and the safety of our local communities,” Prime Minister Peter Magyar told the Hungarian parliament on May 9.
Two Chinese executives in Hungary said many Chinese companies had been working to ensure compliance in recent weeks, though some were still waiting to see whether the informal approaches that worked under the previous government would hold.