Electric car giant BYD has become the first Chinese business to be raised in the European Parliament over allegations of labor abuses in Hungary, CNBC has learned, following a watchdog’s investigation into working conditions at the site.

Contractors hired to build BYD’s factory in Hungary allegedly kept thousands of employees working seven days a week, with shifts lasting more than 12 hours a day, according to a report published on April 14 by New York-based watchdog China Labor Watch (CLW). The group said it interviewed 50 workers and visited the factory site three times since October 2025.

China Labor Watch, a U.S.-based nonprofit organization that has tracked worker conditions since its founding in 2000, shared the report’s findings with EU government representatives. Earlier this month, three members of the European Parliament formally asked the European Commission about the alleged labor abuses in Hungary.

The allegations by China Labor Watch mark the first time claims of labor abuses linked to a Chinese-owned auto business manufacturing in the European Union have been brought to the attention of the European Commission, according to checks by CNBC. 

In February, a worker reportedly died on-site during a crane operation. Citing conversations with workers, CLW founder Qiang Li told CNBC there had been more deaths on site.

He added that, based on conversations with workers, broader medical support was inadequate as individuals were not always employed on work visas with corresponding medical insurance.

Hungary’s National Ambulance Service told CNBC Thursday that since Feb. 1, emergency medical services were called to the factory site 12 times, with one death. 

The latest allegations come as BYD has expanded into an automotive powerhouse, surpassing Tesla as the world’s largest electric car manufacturer in 2025. BYD is among a wave of Chinese companies expanding overseas, aiming to sell more than a million cars outside China this year as sales in its home market slump.

One contractor named in the report, AIM Construction Hungary, is a subsidiary of Jinjiang Construction Group — the same firm linked to a 2024 scandal at BYD’s factory in Brazil that national labor authorities said, following investigations, involved conditions “analogous to slavery.” 

BYD claimed in December 2024 that it stopped working with Jinjiang Construction’s Brazilian subsidiary in the wake of the scandal. But the CLW report allegations indicate BYD hired another subsidiary of the same Jinjiang group to build the factory in Hungary.  The report said CLW reviewed a sample labor contract for jobs at BYD’s Hungary factory, which included the option of being sent to Brazil and Turkey, where BYD is also building a factory.

AIM Construction Hungary was previously known as China Jinjiang Construction Hungary, according to company records from Hungary’s Ministry of Justice, accessed through an authorized data provider.

BYD and the Jinjiang entities did not respond to CNBC’s requests for comment. Authorities in the EU also did not respond.

The facility in the southern Hungarian city of Szeged is one of five BYD sites in Hungary, where the automaker established its European headquarters nearly a year ago during a visit by chairman Wang Chuanfu.

Forced to stay

The EU raised tariffs on China-made electric cars in 2024, in a bid to localize production. But China-made vehicles still climbed to a record 9.3% of new cars sold in the bloc in December, according to Rhodium Group.

BYD is rapidly growing its market share. New BYD cars registered in the EU more than doubled in the first two months of the year to 29,291, exceeding Tesla and gaining 1.8% of the market, according to the European Automobile Manufacturers’ Association.

By model, BYD’s Seal U ranked third in January registrations, behind models from Renault and Skoda, according to European Commission data. More than two-thirds of new passenger cars sold in Europe in January were electric.

Hungary received the bulk of China’s growing automotive investment in Europe over the last three years, according to Rhodium Group data.

BYD’s Szeged factory is slated to produce 300,000 cars per year at full capacity, though the timeline to reach that target is unclear.

As construction of the factory progressed, workers, mostly from China, were allowed to rest only when inclement weather halted work, according to CLW.

Managers “wanted to begin production of cars in January [2026], so they were rushing the project’s timeline — they weren’t letting workers leave,” Li said in Mandarin remarks translated by CNBC.

The Szeged facility manufactures BYD’s Dolphin Surf model, according to a company statement citing BYD Executive Vice President Stella Li. Local media reported in January that trial production had begun.

CLW’s Li said the contractors used a range of financial levers to keep workers on-site. Some were promised free plane tickets home if they worked for more than six months; others had wages withheld until their contracts were fulfilled, or incurred miscellaneous charges such as recruitment fees even before arriving on-site, according to the report.

Employees were directed to tell labor inspectors that they only worked “five days per week, eight hours per day, with one hour of overtime,” the report said. CLW alleged their actual working hours directly violated Hungary’s Labor Code — which limits working hours to eight per day, and no more than 48 hours a week — and that their conditions resemble the International Labor Organization’s definition of forced labor.

When CNBC contacted Hungary’s National Directorate-General for Aliens Policing about the allegations, the government department said it “took the necessary measures within the scope of its authority to conduct examinations of the matters described in the [CLW’s] submissions.”

Political fallout

In Brazil, BYD’s labor issues have led to political ripple effects.

Luiz Felipe Brandao de Mello, head of Brazil’s agency tasked with enforcing national labor standards, was removed from his post, according to an official government gazette. Reuters reported, citing two sources close to the matter, that de Mello lost his position due to a decision to add BYD to a blacklist restricting its access to loans.

Brazil’s labor ministry had added BYD to the list days earlier — only to have a Brazilian court reverse that decision until a final ruling was made.

Brazil’s national association of labor inspectors did not respond to CNBC’s requests for comment.

CNBC

US President Donald Trump has suggested that tensions between the United States and Iran may be approaching a turning point, saying sustained military and economic pressure has weakened Tehran and could pave the way for a resolution. He also pointed to internal divisions within Iran’s leadership as a factor that could accelerate any potential outcome. Meanwhile, Iran’s Foreign Minister Abbas Araghchi has arrived in Saint Petersburg for talks with Russian President Vladimir Putin. Stay with our live blog for the latest updates, official statements, and key developments.

07:15 AM, 27 April 2026

Oil rises, stocks swing as peace talk hopes wobble

Oil prices rose more than one percent Monday, though lingering hopes that a US-Iran deal can eventually be reached has tempered the gains.

Fawad Razaqzada of Forex.com, warned they could surge again at any time.

“If tensions were to escalate further, particularly into open conflict, there’s a clear risk of a sharper spike,” he wrote.

“For now though, as long as shipping through the Strait remains constrained, that premium is unlikely to fade. Until there’s a credible breakthrough, the path of least resistance still looks higher, with a move beyond $110 appearing increasingly plausible.”

Stocks fluctuated through the morning, with Tokyo, Seoul and Taipei sharply up on the back of healthy AI-fuelled tech gains following US giant Intel’s healthy revenue forecasts.

There were also gains in Shanghai and Jakarta, while Sydney, Singapore and Manila fell and Hong Kong was flat.

That came after the S&P 500 and Nasdaq ended Friday at fresh record highs.

07:03 AM, 27 April 2026

Iran FM arrives in Saint Petersburg for Putin talks

Iran’s Foreign Minister Abbas Araghchi arrived in Saint Petersburg on Monday, state media reported.

“He arrived early on Monday morning with the aim of meeting and holding talks with Russian President Vladimir Putin,” Iranian state news agency IRNA posted on Telegram.

Moscow’s TASS news agency confirmed earlier that Putin plans to meet Araghchi, citing Kremlin spokesman Dmitry Peskov.

06:05 AM, 27 April 2026

US naval blockade forces 38 ships to turn back from Iran

The US Central Command (CENTCOM) said American forces have intercepted and redirected 38 vessels since the start of what it described as a maritime blockade on Iran.

According to CENTCOM, the ships were either forced to turn around or return to Iranian ports as US forces continued operations aimed at restricting maritime access.

04:45 AM, 27 April 2026

Putin to meet Iranian foreign minister: state media

Russian President Vladimir Putin plans to meet with Iranian Foreign Minister Abbas Araghchi on Monday, Russian state media reported.

Russia and Tehran, who are both subject to fierce Western sanctions, have developed an increasingly close relationship in recent years.

Moscow’s TASS news agency confirmed the Russian leader’s plans, citing Kremlin spokesman Dmitry Peskov.

Russia’s foreign ministry had said earlier that Araghchi would travel to Moscow for talks.

“We confirm a visit by Araghchi to Russia with the aim of holding talks,” the ministry told RIA Novosti news agency, without providing more details.

Iran’s ISNA news agency quoted Tehran’s ambassador to Russia, Kazem Jalali, saying that Araghchi would meet Putin to “consult with Russian officials regarding the latest status of the negotiations, ceasefire, and surrounding developments”.

04:34 AM, 27 April 2026

Donald Trump signals US-Iran conflict may end soon

US President Donald Trump has indicated that the ongoing tensions between the United States and Iran could be nearing an end, asserting that mounting military and economic pressure has placed Tehran in a weakened position and may push it towards a resolution.

Trump added that internal divisions within Iran’s leadership could further accelerate the path to an outcome.

03:12 AM, 27 April 2026

Araghchi holds high-level talks with Oman’s Haitham

Iran’s Foreign Minister Abbas Araghchi held high-level talks with Oman’s Sultan Haitham bin Tariq in Muscat, focusing on cooperation among Hormuz littoral states to ensure safe maritime transit amid the ongoing war with the US and Israel.

02:47 AM, 27 April 2026

US crude oil tanker makes landmark delivery to Japan

A tanker carrying about 910,000 barrels of US-produced crude oil from Texas arrived in Tokyo Bay, completing a roughly 35-day voyage through the Panama Canal, in one of the largest direct US crude deliveries to Japan in years.

The cargo aboard the tanker M/V Otis marks a notable shift in global energy flows as buyers seek alternatives to Middle Eastern supplies amid disruptions in the Strait of Hormuz, a crucial chokepoint for world oil shipments.

12:05 AM, 27 April 2026

Pakistan lifts Islamabad Red Zone lockdown

Pakistan’s foreign minister, Ishaq Dar, said late Sunday that the government has lifted all restrictions around the high-security zone in the capital of Islamabad.

Iranian and U.S. delegations held rare face-to-face talks there earlier this month. The area had remained under lockdown for more than a week as Pakistan hoped to host a second round of talks aimed at securing a ceasefire.

Dar’s remarks signaled that there was no immediate prospect of further direct talks between the United States and Iran. Still, Pakistan’s government says it continues to mediate by conveying messages between the two sides to promote lasting stability in the region.

In a post on X, Dar thanked residents of Islamabad and the nearby city of Rawalpindi “for their patience and cooperation.”

GN

U.S. President Donald Trump is sending envoys Steve Witkoff and Jared Kushner to Pakistan on Saturday to continue talks with Iran, the White House said Friday. The pair will meet Iranian Foreign Minister Abbas Araghchi, who was heading to Pakistan on Friday for “bilateral consultations,” Iran’s state-run IRNA news agency confirmed. Vice President JD Vance will not be traveling, the White House said. Stay with our live blog for latest updates, official statements, and key developments:

07:23 AM, 25 April 2026

Araghchi to convey Iran’s considerations regarding war’s end in talks

Iranian Foreign Minister Seyed Abbas Araghchi will convey Iran’s considerations regarding the end of the war with the United States and Israel in his visit to Pakistan’s capital, Islamabad, the semi-official Tasnim news agency reported.

Heading a diplomatic delegation, Araghchi is scheduled to visit Pakistan, Oman and Russia, the report said, adding the visits are aimed at ensuring close coordination with Iran’s partners regarding bilateral issues, and holding consultations on the latest regional developments.

Araghchi will not hold any negotiations with US officials during his visit.

Commenting on his tour in a post on social media platform X on Friday, Araghchi said, “Embarking on a timely tour of Islamabad, Muscat, and Moscow. The purpose of my visits is to closely coordinate with our partners on bilateral matters and consult on regional developments. Our neighbours are our priority.”

05:16 AM, 25 April 2026

US says detained Kuwaiti-American journalist has been released by Kuwait

The State Department says a detained Kuwaiti-American journalist who was arrested in Kuwait has been released after intervention by the Trump administration.

The department said late Friday that Ahmed Shihab-Eldin had been freed and allowed to leave Kuwait. It offered no other details, citing privacy concerns.

03:21 AM, 25 April 2026

Iran says no direct talks with US in Islamabad are planned

Shortly after Iranian Foreign Minister Abbas Araghchi touched down in Pakistan, his government made it clear that there would be no direct negotiations with American government representatives during this visit.

Foreign ministry spokesperson Esmael Baqaei said on X that “No meeting is planned to take place between Iran and the U.S.” Instead, Baqaei said Pakistani officials would convey messages between the delegations.

Baqaei thanked the Pakistani government for its “ongoing mediation; good offices for ending American imposed war of aggression.”

The White House said earlier Friday that its envoys would meet Araghchi.

02:21 AM, 24 April 2026

Bessent rules out renewal of Iranian and Russian oil waivers

Treasury Secretary Scott Bessent said Friday that the U.S. does not plan to renew a waiver allowing the purchase of Russian oil and petroleum products that are currently at sea. He also said a renewal of a one-time waiver for Iranian oil at sea is totally off the table.

“Not the Iranians,” Bessent told The Associated Press. “We have the blockade, and there’s no oil coming out.”

In an AP interview about the impact of the war on the global energy market and other topics, Bessent also said he had no plans to extend the sanctions relief for Russia.

“I wouldn’t imagine that we’d have another extension. I think the Russian oil on the water has been largely sucked up,” he said.

12:27 AM, 25 April 2026

UAE strongly condemns terrorist attack on Kuwaiti border posts

The UAE condemned in the strongest terms the terrorist attack that targeted two northern border posts in the State of Kuwait using two explosive-laden drones launched from the Republic of Iraq.

In a statement, the Ministry of Foreign Affairs (MoFA) affirmed that this terrorist attack constitutes a violation of the sovereignty of Kuwait and a threat to its security and stability.

The UAE expressed its full solidarity with Kuwait and its support for all measures aimed at safeguarding its security and stability.

12:07 AM, 25 April 2026

US freezes $344m in cryptocurrency linked to Iran

The United States has frozen $344 million in cryptocurrency assets over ties to Iran, Treasury Secretary Scott Bessent said Friday, as Washington seeks to raise pressure on Tehran amid energy supply disruptions due to war in the Middle East.

The Treasury Department “will continue to systematically degrade Tehran’s ability to generate, move, and repatriate funds,” Bessent vowed in a statement on X.

He added that his agency was imposing sanctions on “multiple wallets tied to Iran,” resulting in the freeze of funds.

A US official said on condition of anonymity that Washington is targeting both typical sanctions evasion means like front companies, alongside newer technologies like digital assets.

The official added that Treasury is in active dialogue with financial institutions including digital assets exchanges.

12:07 AM, 25 April 2026

Iran FM arrives in Islamabad for talks on reviving ceasefire negotiations

Pakistan’s Foreign Ministry said an Iranian delegation led by Foreign Minister Abbas Araghchi arrived in Islamabad on Friday.

Araghchi was received by Pakistan’s Foreign Minister Ishaq Dar, Chief of Army Staff Field Marshal Asim Munir and other senior officials upon arrival.

In a statement, it said during the visit Araghchi is expected to meet Pakistan’s senior leadership to discuss the latest regional developments and ongoing efforts to promote regional peace and stability.

12:04 AM, 25 April 2026

Trump dispatches Witkoff and Kushner to Pakistan for new talks

US President Donald Trump is sending his envoys Steve Witkoff and Jared Kushner to Pakistan on Saturday to continue talks with Iran, the White House said Friday.

White House press secretary Karoline Leavitt said in an interview on Fox News Channel that the two will have talks with Iranian Foreign Minister Abbas Araghchi.

“We’re hopeful that it will be a productive conversation and hopefully move the ball forward to a deal,” Leavitt said.

She said that Vice President JD Vance would not be traveling but that he remains “deeply involved.” She said he will be in the US, along with Secretary of State Marco Rubio and the president’s national security team, on “standby” to fly to Pakistan “if necessary.”

GN