{"id":4004,"date":"2026-07-30T22:37:28","date_gmt":"2026-07-30T22:37:28","guid":{"rendered":"https:\/\/hometransferguide.com\/?p=4004"},"modified":"2026-07-30T22:37:28","modified_gmt":"2026-07-30T22:37:28","slug":"chinese-company-imports-workers-accused-of-polluting-hungarys-water-it-also-gets-tax-breaks-in-us","status":"publish","type":"post","link":"https:\/\/hometransferguide.com\/?p=4004","title":{"rendered":"Chinese Company Imports Workers, Accused Of Polluting Hungary\u2019s Water. It Also Gets Tax Breaks In US"},"content":{"rendered":"
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In idyllic Sidney, Ohio, roughly two miles southwest of the 166-year-old fairgrounds, justpastthe Louis Sullivan-designed bank and ornate Court Square, lies the location of SEMCORP Manufacturing USA Inc., a Chinese battery component manufacturer that prefers its new hires speak Mandarin.<\/p>

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Photos and other investigative materials reviewed by the Daily Caller News Foundation show Chinese nationals being transported between temporary housing in motels and the Sidney plant at unusual hours, resembling the \u201c996\u201d (9 a.m. to 9 p.m., 6 days a week) practice in China. The materials include job posts on Indeed.com listing the company\u2019s preferred language as Mandarin.<\/p>

It\u2019sa far cry from the promise of 1,199 full-time positions for locals that charmed the Sidney City Council in May 2022. The council voted unanimously to approve a job creation tax credit for SEMCORP after the company predicted it would produce $73 million in annual payrolls, a boon to the small Midwestern town.<\/p>

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SEMCORP enjoys a through a , as independent reporter Breanna Morello first reported.<\/p>

\u201cWe are encouraged by their willingness to be a good neighbor,\u201d said Sidney City Manager Andrew Bowsher<\/span> after the vote.<\/p>

SEMCORP is just one example of how the American government invests in Chinese firms that do not invest in the safety and security of the Americans living in the towns they operate in.<\/p>

The One Big Beautiful Bill Act (OBBBA) \u2014 the massive spending and tax credit bill President Donald Trump signed into law in July 2025 \u2014 was supposed to prevent tax credits from flowing to companies owned or effectively controlled by China, or to companies that receive most of their supplies from China.<\/p>

Taxpayer funding funneled to Chinese battery manufacturers risks supporting dual use technology, according to Michael Busler, a policy analyst and a professor of finance at Stockton University. Advanced batteries play a role in military equipment.<\/p>

\u201cIt is critically important that the U.S. does not rely on China for these products,\u201d he told the DCNF.<\/p>

But enforcement is a challenge. Beijing embraces a fusion of the civil and military uses of science that blurs the line between work on consumer products and work on weapons, according to the State Department. Chinese controlled firms gobble up subsidies through U.S. shell companies, according to Consumer Action for a Strong Economy, a political advocacy group focused on consumer interests and the free market.<\/p>

In the end, American tax dollars may subsidize Chinese industrial policy. Often promised jobs for locals never materialize. <\/p>

SEMCORP confirmed that Chinese nationals work at the company. James Shih, the head of global projects and legal for SEMCORP Group, told the DCNF in an interview that these workers have L-1 visas, which are meant for executives and technicians with specialized knowledge. He challenged the assumption that there is anything unusual about employees staying in motels and the company providing travel to employees without driver\u2019s licenses. <\/p>

Shih said the company plans to partner with an American firm in order to comply with regulations on Chinese firms. He insisted the firm would eventually train up Americans, but could not provide a timeline for doing so.<\/p>

He said that the company does not plan on utilizingcity tax breaks based on hiring or investment numbers. <\/p>

\u201cSEMCORP America is proud to be the first company to invest in the commercial-scale manufacturing of coated lithium-ion battery separator, a critical component of our energy supply chain, in the United States,\u201d Shih said in a statement. \u201cWe\u2019re also proud of our international employees working shoulder-to-shoulder with our local workforce.\u201d<\/p>

\u201cWe\u2019re still early in our launch but look forward to bringing hundreds of advanced manufacturing jobs right here to Ohio,\u201d he added.<\/p>

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Within weeks of Ohio Gov. Mike DeWine announcing<\/span> SEMCORP\u2019s plans to build a plant in Sidney as part of $1 billion in investment across the state, residents packed into City Hall to raise concerns about the company\u2019s generous tax credits and Chinese roots, according to a Sidney Daily News<\/span> report.<\/p>

Twenty-year resident J.R. Edwards said he was worried about runoff into his nearby property, the paper reported. SEMCORP manufactures insulation separating the nodes of electric car batteries, a process that involves several hazardous solvents.<\/p>

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Now new concerns have emerged at an older plant in Europe \u2014 the company\u2019s first factory outside of China.<\/p>

SEMCORP\u2019s first foreign factory opened in 2023 in Debrecen, Hungary. Just three years later, it has been alleged that the plant leached aluminum into the groundwater at 13,000 times the legal limit, according to a June report by Index, Hungary\u2019s most popular news site, translated by the DCNF.<\/p>

The Hungary plant has been under regular environmental inspection since foam from a faulty fire alarm system seeped into the groundwater in 2024.<\/p>

Hungary\u2019s environmental authority discovered a pungent-smelling substance in February, but the company delayed sending in tests of metal pollution in the groundwater until May 14, according to Index. The regional government pulled the plant\u2019s production license in late June, halting operations, per Reuters.<\/p>

Shih said that many of the contaminants identified in the groundwater in Hungary are not used in their manufacturing process. SEMCORP is located in an industrial park with other EV battery manufacturers. Aluminum, the primary cause for concern, is used in SEMCORP\u2019s process however. <\/p>

Former Hungarian Prime Minister Viktor Orb\u00e1n welcomed resource-intensive, Chinese owned \u201cgiga\u201d plants with government tax breaks and legal loopholes \u2014 which was seen by many Hungarian voters as a betrayal of his anti-immigration roots. The unpopularity of the EV battery sector and its government giveaways may have played a role in Orban\u2019s shock electoral defeat in April. <\/p>

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Hungarian Prime Minister P\u00e9ter Magyar announced in June that he was cracking down on non-European Union visas, and European media has noted that most are granted to workers in the battery and automotive industries.<\/p>

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Today, even members of Orban\u2019s Fidesz Party have changed their tune. <\/p>

Debrecen Mayor Papp L\u00e1szl\u00f3, a member of Fidesz, urged a complete investigation, including criminal penalties if necessary.<\/p>

\u201cWe strongly urge the environmental protection authority to conduct a comprehensive investigation into this matter. It should examine SEMCORP\u2019s liability, suspend SEMCORP\u2019s manufacturing activities if necessary, and consider revoking its environmental permit,\u201d L\u00e1szl\u00f3 said in a video posted to Facebook, translated by the DCNF.<\/p>