Brazil Stops Issuing Visas for BYD Following Human Trafficking Accusations
Brazil has halted the issuance of temporary work visas for Chinese electric vehicle producer BYD, following allegations of human trafficking at a construction site owned by the company. The decision was announced by the Ministry of Foreign Affairs on Friday, just days after labor authorities discovered 163 Chinese workers at the site in the northeastern state of Bahia, who had been brought to the country irregularly and were employed in “slavery-like” conditions.
The workers, who were employed by contractor Jinjiang Group, were found to be victims of human trafficking. BYD has invested $620 million in the Bahia factory complex, which is set to begin production early next year with an initial annual output of 150,000 cars.
The Ministry of Justice has also announced that if irregularities found by prosecutors in the BYD factory are confirmed, it will revoke the residence permits issued to the Chinese workers. The decision to suspend visa issuance was made on December 20, three days before the labor authorities’ findings were made public.
Jinjiang Group has denied any wrongdoing, and in a social media post, rejected the Brazilian authorities’ accusations about the work conditions at the Bahia site, stating that the portrayal of the workers as “enslaved” was inaccurate and that there had been translation misunderstandings.
BYD and Jinjiang Group have agreed to assist and house the 163 workers in hotels until a deal to end their contracts is reached. The Brazilian Labor Prosecutor’s Office has also met with representatives from both firms to discuss the situation.
The halt in visa issuance is a significant blow to BYD, which has become a symbol of China’s growing influence in Brazil and an example of the closer relationship between the two countries. Nearly one in five cars BYD sold outside of China in the first 11 months of 2024 was in Brazil.
