Investigation into Human Trafficking Allegations at BYD Construction Site

Brazilian labor authorities are investigating allegations of human trafficking and forced labor at a construction site in Bahia State, Brazil, where a factory owned by China's electric vehicle producer, BYD, is being built. This adds to the growing controversy surrounding BYD in its largest overseas market.

On Thursday, Brazil's labor ministry released videos and photos indicating overcrowded sleeping conditions and unsanitary environments at the site. Following discussions with representatives from BYD and contractor Jinjiang Group, both parties agreed to provide assistance and temporary housing in hotels for 163 workers until a contract termination agreement is finalized.

The Chinese foreign ministry announced on Friday that it is in communication with Brazilian authorities to verify the situation. They emphasized their commitment to protecting workers' rights and ensuring that Chinese companies comply with the law. Neither BYD nor Jinjiang has responded to requests for comments, though Jinjiang dismissed Brazilian authorities' claims of slavery-like conditions at the site.

A BYD executive previously accused "foreign forces and some Chinese media" of deliberately damaging the image of Chinese brands. The factory under construction is part of BYD's plans to begin production in Brazil by 2024 or early 2025, with an estimated capacity of 150,000 cars annually, symbolizing China's influence in Brazil. BYD has invested $620 million in the Bahia factory complex.

This investigation puts unwelcome scrutiny on BYD as the company prepares for global expansion after achieving dominance in China. Brazilian authorities have scheduled another meeting with BYD and Jinjiang for January 7 to propose a deal.