Workers rescued from abusive conditions in BYD’s $620m Brazil project

Hundreds of Chinese workers at BYD’s new factory in Brazil have been found working under alarming conditions. Brazilian labour inspectors discovered 163 workers, hired through BYD’s contractor Jinjiang, in what authorities described as “slavery-like conditions.”

Liane Durao, a key labour inspector, revealed, “All of this was irregular.” She confirmed that BYD faces fines for every worker involved and will fund the repatriation of the affected employees. These workers have either returned to China or are in the process of leaving Brazil.

A $620 Million Project Under Scrutiny

BYD has invested $620 million in its Bahia factory, designed to produce 150,000 electric vehicles annually. This facility symbolizes China’s growing influence in Brazil and its deepening ties with the South American nation. However, the labour investigation threatens to delay the project.

About 500 Chinese workers were brought to the factory, raising questions about job creation for Brazilians. Labour authorities reported that Jinjiang withheld passports from 107 workers, a practice associated with human trafficking.

A Blow to Bilateral Relations

The scandal has strained Brazil-China relations. President Luiz Inácio Lula da Silva’s administration prioritizes local job creation, while China often brings its workforce to international projects.

Chinese Foreign Ministry spokesperson Guo Jiakun stated, “We require Chinese enterprises to operate in accordance with local laws and regulations.”

Global Expansion Hits a Roadblock

Brazil is BYD’s largest market outside China, accounting for nearly 20% of its international sales in 2024. However, the company’s global ambitions face challenges as Brazil suspends temporary visas for BYD workers.

Labour authorities continue to monitor the site to ensure remaining workers are treated fairly. For BYD, compliance is now critical, as investigations into slavery carry severe consequences, including restricted access to bank loans.

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