Chinese Workers Rescued from 'Slavery-like' Conditions at BYD Construction Site in Brazil

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In a significant labor scandal, Brazilian authorities recently rescued 163 Chinese workers from a construction site owned by BYD, a major electric car manufacturer, on December 23, 2024. Inspections revealed that the workers were subjected to extreme working hours, unsanitary living conditions, and had their passports withheld by their employer, a subsidiary of BYD.

The workers had been working at the new factory site in Camaçari, Bahia, which is set to produce electric and hybrid vehicles, with the first cars expected to hit the market in March 2025. The incident marks a troubling moment amid the growing economic relationship between China and Brazil, as the BYD facility is emblematic of Chinese investment in the region and is seen as a response to the departure of Ford from Brazil in 2021.

Brazilian labor inspectors reported the workers lived in inadequate conditions, sleeping on bunk beds without mattresses and facing a severe shortage of sanitation facilities. In response to the allegations, the Jinjiang Group, responsible for the workers' conditions, denied the accusations of forced labor, describing the situation as a misunderstanding fostered by “foreign forces” aiming to undermine the company’s reputation.

In light of these revelations, the Brazilian Foreign Ministry has suspended the issuance of temporary work visas for BYD. The Ministry of Labor has summoned both BYD and Jinjiang Group for a January 7 hearing to address the claims. This situation could have broader implications for the electric vehicle market in Brazil, where BYD has become increasingly prominent amid rising competition with companies like Tesla.

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