Szeged, Hungary — A new investigation by China Labor Watch (CLW) has identified serious labor rights concerns affecting Chinese migrant workers at the construction site of BYD’s electric vehicle manufacturing facility in Szeged, Hungary.
Based on field research conducted in October and November 2025, including interviews with 50 workers, and one additional field work in early 2026 to confirm finding, the report documents systemic labor risks associated with subcontracted employment arrangements. These include excessive working hours, opaque wage practices, recruitment-related debt, and conditions that may align with internationally recognized indicators of forced labor.
Key Findings
The investigation highlights a pattern of labor practices that may violate Hungarian labor law and international standards:
- Excessive working hours: Workers reported seven-day workweeks with little or no rest, often exceeding legal limits on working time and overtime.
- Wage opacity and withholding: Payment structures obscure overtime obligations, with portions of wages withheld for extended periods, limiting workers’ ability to leave employment.
- Recruitment-related debt: Workers paid substantial recruitment fees, creating financial dependency and increasing vulnerability to exploitation.
- Visa irregularities: Some workers reported being employed under business visas rather than valid work permits, restricting access to legal protections.
- Intimidation and retaliation risks: Workers expressed fear of retaliation for raising concerns or leaving their jobs.
A Critical Moment for Europe’s EV Supply Chain
BYD’s Szeged facility represents a major investment and a key entry point into the European Union’s electric vehicle market. However, CLW warns that without stronger oversight, labor practices observed at the site risk setting a precedent for the broader EV supply chain in Europe.
Hungary has become a central hub for Chinese electric vehicle investment, accounting for a significant share of such projects in Europe. Ensuring that these investments comply with labor standards is essential to preventing a “race to the bottom” in working conditions.
Recommendations
China Labor Watch calls on:
- Hungarian authorities to strengthen inspections and enforce labor and migration laws;
- BYD and contractors to eliminate recruitment fees, ensure transparent wage practices, and uphold legal working hours;
- EU institutions to ensure effective implementation of new supply chains rules;
- Companies across the supply chain to conduct robust human rights due diligence and remediate violations.