China's EV investment sprouts in Hungary amid EU tariff debate

China's New Energy Vehicle (NEV) sector is prospering in Hungary as the construction of two major Chinese EV plants in the European Union member state is moving ahead without delay.

The construction of a 7.3-billion-dollar battery plant by Chinese company CATL is well underway in the country's Debrecen. This facility will be a critical part of Europe's electric vehicle supply chain.

In Szeged, another Hungarian city, Chinese electric car giant BYD plans to start production by 2025 at its 300-acre (121.4-hectare) factory currently under construction.

Experts say these two projects are a key part of Hungary's growing electric vehicle industry.

"In 2023, we saw the Chinese FDI (foreign direct investment) in the EU, especially in the EV cars [grow], 44 percent of it came to Hungary. So it's a huge number, but we cannot forget that in the past ten years, 50 percent - so the half - of the Chinese FDI in the EV cars went to France, Germany and the UK," said Levente Horváth, founding director of the Eurasia Center of John von Neumann University and Former Consul General of Hungary in Shanghai.

As the EU considers imposing tariffs on Chinese electric vehicles permanent, Hungary is pushing back, citing concerns about an economic fallout.

Horváth says the EU is divided over imposing tariffs on Chinese electric vehicles.

Hungary, Slovakia, Germany, Spain, and Sweden however plan to oppose these tariffs in an upcoming October vote, citing concerns about potential economic damage to their automotive sectors.

Negotiations between the European Union and China are ongoing, with both sides exploring alternatives. If these talks fail, the EU could impose tariffs of up to 35 percent for the next five years, risking a trade war with one of its biggest economic partners.

Some experts say that Hungary has positioned itself competitively in the industry, even in the face of potential EU tariffs on Chinese EVs.

"From the point of view of the Hungarian government, the good news is that even if the European Union props up some of its anti-subsidy measures against the Chinese car producers, the cars produced in Hungary will be probably exempted from such measures because they are made in the European Union," said Tamas Matura, founder of the Central and Eastern Center for Asian Studies at Corvinus University.

The EU remains focused on protecting its automobile industry, which employs around 14 million people. In recent talks, the bloc and Chinese officials said they had a constructive dialogue but reached no agreement.

At the same time, China is investigating EU brandy and pork checking if these products are being sold at unfairly low prices that could hurt local producers.

Experts suggest the EU still has time to reconsider and potentially avert a trade conflict with China.

China's EV investment sprouts in Hungary amid EU tariff debate

China's EV investment sprouts in Hungary amid EU tariff debate

Chicago policymakers have introduced measures to increase housing supply, in a move that local activists and construction industry stakeholders have hailed as key to easing affordability pressures on residents.

According to the city's 2025 annual report on homelessness, Chicago is facing its largest gap in affordable and available housing in a decade, with the annual Point-in-Time (PIT) Count estimating that 7,452 people were experiencing homelessness, either in shelters or unsheltered locations, on January 23, 2025.

Steven Vance, a social worker in Chicago, said policies that previously curbed the city's housing supply have pushed up rent costs amid demographic changes.

"Households are declining in size, and that means we need more homes, and I thought it was strange that we would artificially restrict how many homes could get built in Chicago. Right now in Chicago, we have one of the highest rent growths, compared year to year in the country, and so now is a pivotal time to allow more housing," he said.

To address the challenge, Chicago has introduced zoning and land-use reforms, including the Additional Dwelling Units (ADU) Ordinance, aimed at increasing residential density and expanding housing supply.

The ordinance effectively expands housing access across the city by allowing ADUs in attics, basements, and accessory buildings, easing the rent burden and creating more budget-friendly housing options.

"In December 2020, City Council adopted an ordinance that would legalize ADUs in five pilot areas. (With ADU,) rents will maybe not always come down, but they will not climb as quickly as they are now if we have more housing options," he said.

The construction sector in the city has welcomed the policy change, with builders jumping on the opportunity to create new structures. For many in the industry, boosting housing supply is not just about doing business, but about addressing the issue of affordability as Chicago residents themselves.

"The housing market in Chicago has been impacted by the ADU program, to me, in a really big way. It's enabled a lot more rental projects to be constructed. I want there to be more housing in Chicago. I think there is a need for that, and I think there's also a need for responsible development that maintains the character of the neighborhood. Affordable housing to me is a really important issue, and to me, the biggest denominator in affordable housing is the lack of supply. The best route to affordable housing is to have an influx of housing," said Nick Serra, a construction professional.

Chicago expands housing supply to ease affordability pressure