BYD Faces Scrutiny in Brazil After Rescuing Workers from 'Slavery-like' Conditions

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Brazilian labor inspectors recently rescued 163 Chinese workers from a construction site for BYD's electric car factory in Camaçari, Brazil, reportedly subjecting them to conditions akin to slavery. The incident occurred on December 23, with workers living in unhealthy conditions, enduring long hours, and having their passports withheld.

BYD, a major electric vehicle manufacturer from China, is poised to launch its first electric cars made in Brazil by March 2025, a move symbolizing the growing ties between China and Brazil. The scandal erupted just as the plant was set to play a significant role in the local economy by creating thousands of jobs, marking a shift following Ford's departure from the country in 2021.

The company involved, Jinjiang Group, has denied the allegations, citing misunderstandings and accusing “foreign forces” of attempting to harm the company's reputation. Meanwhile, the Brazilian Foreign Ministry has suspended the issuance of temporary work visas to BYD until further notice.

The Brazilian Ministry of Labor has summoned BYD and Jinjiang Group for hearings to address the serious allegations. The Ministry emphasized that labor conditions reminiscent of slavery are illegal under Brazilian law, highlighting the nation's historical significance regarding labor rights.

As the situation unfolds, BYD plans to create approximately 10,000 jobs by the end of 2025, while expanding its electric vehicle production capacity to meet growing demand in Latin American markets, challenging competitors like Tesla.

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