Brazilian Authorities Are Investigating BYD Over Reports of Slavery

Chinese industry is no stranger to slavery and forced labor allegations, but the reports are usually about workers within the country. China’s BYD, its largest EV manufacturer, is breaking that trend with reports that workers building its new factory in Brazil were kept in “slavery-like” conditions, leading the South American country to stop issuing temporary work visas for the company’s employees.

Brazilian authorities said they had located 163 Chinese workers brought to the country and held in “slavery-like conditions.” Jinjiang Group, a BYD contractor, is their employer and denied any illegal activities, though the government said it had identified the workers as victims of human trafficking.

BYD has invested $620 million in the factory, located in Bahia, in northeast Brazil. The country is an important region for the automaker, which is expanding rapidly into global markets. The Chinese company plans to kick off production in Brazil next year and said it is targeting an annual output of 150,000 cars.

Jinjiang Group said the Brazilian authorities’ portrayal of the situation as slavery was inaccurate and noted that there was some misunderstanding due to translation issues. Even so, Brazil’s Ministry of Justice said it would investigate and, if the reports are confirmed, revoke the residence permits issued to the workers. In the meantime, BYD and Jinjiang have agreed to house the workers in hotels until the end of their contracts.

[Images: BYD]

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