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

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.

In a post on X, Araghchi stated: “Appreciative of my gracious hosts in Oman. Important discussions on bilateral matters and regional developments. As only Hormuz littoral states, our focus included ways to ensure safe transit that is to benefit of all dear neighbors and the world. Our neighbors are our priority.”

The meeting took place at Al-Baraka Palace in the Omani capital on Sunday, according to Press TV.

Discussions centred on the evolving regional situation, including efforts to resolve crises through dialogue and diplomatic engagement, alongside strengthening cooperation between the two countries.

Oman’s support for dialogue, mediation

During the talks, Araghchi briefed the Omani leadership on Tehran’s perspective regarding recent developments and outlined Iran’s diplomatic initiatives to address ongoing conflicts.

He also expressed appreciation for Oman’s continued support for dialogue and mediation aimed at enhancing regional stability.

Sultan Haitham bin Tariq reiterated Oman’s commitment to facilitating diplomatic solutions, emphasising the need to prioritise dialogue to mitigate the impact of crises on people across the region.

Sustained engagement

He underlined that sustained engagement and mediation are key to achieving long-term peace and security.

The meeting comes amid heightened tensions following the US-Israel conflict involving Iran, with Tehran stepping up diplomatic engagements across multiple capitals.

Oman has historically played a mediating role in regional disputes, particularly in facilitating indirect talks involving Iran and Western countries.

Following his Oman visit, Araghchi travelled to Pakistan, where he met senior civil and military leadership, including Chief of Army Staff Asim Munir, as part of efforts to sustain dialogue on the evolving situation.

He later departed for Russia to continue consultations with senior officials.

GN

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