Chinese Workers at BYD’s Brazilian Factory Accused of Human Trafficking
Chinese workers at a construction site in Brazil for a factory owned by electric vehicle producer BYD are victims of human trafficking, according to Brazilian labor authorities. The accusation is part of a growing controversy surrounding BYD’s biggest overseas market.
The Brazilian Labor Prosecutor’s Office stated that 163 workers at the site in the eastern state of Bahia are operating under “slavery-like conditions” and announced that BYD and its contractor, Jinjiang Group, have agreed to assist and house the workers in hotels until a deal to end their contracts is reached.
The two companies rejected the Brazilian authorities’ assessment, with Jinjiang calling the portrayal of the workers as “enslaved” inaccurate and stating that there were translation misunderstandings. BYD initially cut ties with Jinjiang but later accused “foreign forces” and some Chinese media of “deliberately smearing Chinese brands and the country.”
The Brazilian authorities will meet with the companies again on January 7 and propose a deal. However, even if a deal is reached, BYD and Jinjiang could still face scrutiny from labor inspectors and federal prosecutors.
The investigation into the irregularities at the factory has raised concerns about China’s growing influence in Brazil and its model of taking Chinese workers to countries where it invests, which presents a challenge to local job creation.
The case has also sparked a rare backlash on Chinese social media against BYD, with some internet users expressing concerns over worker rights and conditions. Brazilian prosecutors released videos showing the workers’ living quarters, which showed bunk beds without mattresses, and said the workers labored for excessively long hours in degrading conditions.
The incident has implications for BYD’s global expansion plans, as the company has been building factories in several countries, including Hungary, Mexico, Thailand, and Uzbekistan. BYD is poised to outsell Ford and Honda globally this year and has been on an extraordinary expansion at home and abroad.