Brussels is investigating whether China provided unfair subsidies for a BYD electric car plant in Hungary, in a highly sensitive move to target the deepening economic ties between Beijing and Viktor Orbán.
The European Commission is in the preliminary stages of a foreign subsidy probe into the BYD plant, two people familiar with the matter told the Financial Times, in a step that will further raise trade tensions with Beijing.
If Brussels finds that the Chinese company has benefited from unfair state aid, it could force it to sell some assets, reduce capacity, repay the subsidy and potentially pay a fine for non-compliance.
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