BYD Faces Scrutiny in Brazil for Labor Violations and Trafficking

Chinese electric vehicle manufacturer BYD is under scrutiny in Brazil after labor authorities uncovered significant violations at the construction site of its Bahia factory. The case involves allegations of human trafficking and "slavery-like conditions" affecting 163 Chinese workers, who were brought to Brazil on irregular visas by BYD's contractor, Jinjiang Group. 

Liane Durao, a labor inspector for Brazil’s Ministry of Labor, revealed that 163 workers employed by Jinjiang were found working in conditions deemed degrading by Brazilian authorities. The workers reportedly had their passports withheld, were subjected to long working hours, and lived in overcrowded quarters with inadequate amenities. “All of this was irregular. BYD will be fined for each worker found in these conditions,” Durao stated.

The workers have since left or are in the process of leaving Brazil. Authorities reported that approximately 500 Chinese workers were brought to the country to help build the factory. Both BYD and Jinjiang have pledged to address the situation for those remaining on-site.

BYD has distanced itself from the controversy, stating it has severed ties with Jinjiang. However, Jinjiang has denied the allegations, assuming that the workers’ conditions were misrepresented due to translation issues. "Chinese-funded enterprises are required to operate in accordance with laws and regulations," stated China's Ministry of Foreign Affairs.

In response to the case, the Brazilian government has suspended the issuance of temporary visas for BYD, which could impact the factory’s construction timeline. Labor prosecutors are in negotiations with BYD and Jinjiang to safeguard workers' rights and prevent further legal actions.

The Bahia factory, a key part of BYD's global expansion strategy, represents a US$620 million investment aimed at producing 150,000 vehicles annually. Brazil is BYD's largest market outside of China, accounting for nearly 20% of its international sales in the first 11 months of 2024.