Scandal Erupts at BYD's Brazilian Factory Amid Allegations of Slave Labor Conditions

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Brazilian labor inspectors recently rescued 163 Chinese workers from a construction site of BYD’s electric car manufacturing facility in Camaçari, Bahia, after allegations surfaced about "slavery-like" working conditions. The rescue operation took place on December 23, 2024, revealing that workers were subjected to grueling hours, poor living conditions, and had their passports withheld.

BYD, a prominent Chinese electric vehicle manufacturer, is set to launch its first electric cars made in Brazil by March 2025. This factory represents a significant investment from China and aims to create thousands of jobs in a region left vacant after the exit of U.S. automaker Ford in 2021.

The company implicated, Jinjiang Group, has denied the allegations, claiming a misunderstanding has occurred. However, Brazilian authorities have stopped issuing temporary work visas for BYD in light of the accusations. The Brazilian Foreign Ministry has summoned Jinjiang Group and BYD for a hearing on January 7 regarding the situation.

Labor inspectors found the living conditions of the workers deplorable, with insufficient sanitation facilities and inadequate sleeping arrangements, often forcing workers to share cramped bunk beds. The government of Brazil, which abolished slavery in 1888, takes such allegations very seriously, with penalties for forced labor that include heavy fines and criminal charges.

The situation has placed additional scrutiny on China-Brazil relations just months after President Luiz Inácio Lula da Silva welcomed Chinese President Xi Jinping, amid efforts to enhance economic partnerships. Despite the scandal, BYD planned to manufacture 150,000 vehicles in Brazil within the first year, aiming to capitalize on the growing demand for electric vehicles in Latin America.

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