Executive Vice-President Roxana Mînzatu, in a written answer on 22 July 2026, signalled that Chinese carmaker BYD likely falls within the scope of the EU's Corporate Sustainability Due Diligence Directive (CSDDD) despite recent threshold increases, and announced that the Commission is preparing a legislative proposal to strengthen the European Labour Authority's (ELA) mandate for cross-border inspections. The answer addresses three outstanding concerns raised by MEPs Raphaël Glucksmann (S&D), Kathleen Van Brempt (S&D), and Klára Dobrev (S&D) regarding alleged forced labour at the BYD construction site in Szeged, Hungary.
Mînzatu stated that while data availability will improve by the time the CSDDD becomes applicable on 26 July 2029, currently available data suggest that BYD's ultimate parent company will fall under the directive's scope. This addresses the first concern, as the Omnibus I amendments raised the net EU turnover threshold to EUR 1.5 billion for non-EU companies, potentially excluding BYD. On the second point, Mînzatu rejected the claim that the Forced Labour Regulation's product focus creates a legal gap for construction sites, arguing that the regulation complements national labour and criminal laws. Regarding the third concern, she confirmed that the Commission is working on a legislative proposal under the already announced Fair Labour Mobility Package to strengthen ELA's mandate, including for cross-border inspections, though the content and scope are still under preparation.
the Commission sees no immediate legal gap but acknowledges structural weaknesses in enforcement. The upcoming Fair Labour Mobility Package proposal will be the key institutional follow-up, with timing yet to be announced. The response impacts four main stakeholders: BYD and other non-EU companies face potential CSDDD obligations; Hungarian authorities may face increased scrutiny; ELA could gain stronger investigative powers; and EU workers stand to benefit from improved cross-border labour protections.