Seven-day weeks and ‘debt bondage’: China’s first electric car plant in Europe mired in allegations of worker abuse

Construction of China’s first electric vehicle (EV) factory in Europe, operated by BYD in Szeged, Hungary, is facing serious allegations of worker abuse involving Chinese migrant laborers. Reports from China Labor Watch, a New York-based rights organization, reveal potential violations of EU labor laws, including mandatory seven-day workweeks, recruitment-related debt bondage, excessive overtime, and visa irregularities. The factory, slated to produce 300,000 cars annually starting in 2027, has come under scrutiny amid these claims and a fatal workplace accident in February. The workforce primarily consists of Chinese migrants hired through subcontractors, who describe strict supervision and harsh living conditions. Some workers reportedly feel compelled to work every day of the week, while others note that only those from China tend to accept such schedules. The European Commission has acknowledged awareness of the allegations and indicated that a case is currently under review by the Hungarian labor inspectorate. Meanwhile, local rumors have circulated about additional health concerns, including several migrant workers reportedly being treated for tuberculosis. The BYD factory project is part of Hungary’s broader strategic partnership with China, initiated under former Prime Minister Viktor Orbán, which has included significant Chinese investment and high-profile diplomatic visits. This collaboration aims to position Hungary as a key hub for Chinese automotive manufacturing in Europe. However, the emerging labor rights issues cast a shadow over the project’s reputation and raise questions about compliance with European labor standards amid rapid industrial expansion. The fatal accident in February, confirmed by BYD, involved a loading and crane operation, with investigations ongoing. The incident has intensified scrutiny of workplace safety and labor conditions at the site. As the factory’s construction progresses, these allegations highlight the challenges of balancing foreign investment and economic development with the protection of workers’ rights and adherence to EU regulations.