Investigation by Brazilian Labor Inspectors into Human Trafficking Allegations at BYD Factory Site
Investing.com -- Brazilian labor inspectors have launched an investigation into allegations of human trafficking and forced labor at a construction site for a factory owned by Chinese electric vehicle manufacturer BYD in the state of Bahia, Brazil. This investigation adds to the growing controversy surrounding the company in its largest overseas market.
On Thursday, the Brazilian Ministry of Labor released videos and photos showing an overcrowded sleeping area, a bed placed next to a kitchen table, and dirty walls. The labor inspection stated that after discussions with representatives from BYD and contractor Jinjiang Group, both parties agreed to provide assistance to 163 workers and temporary accommodations in hotels until a contract termination agreement is made.
The Chinese Ministry of Foreign Affairs confirmed on Friday that it is in contact with Brazilian authorities to verify the situation. The ministry emphasized its commitment to protecting workers' rights and ensuring that Chinese enterprises operate in compliance with the law. On Friday, neither BYD nor Jinjiang immediately responded to requests for comments. However, Jinjiang rejected Brazilian authorities' assessment on Monday, stating that the claims of workers being subjected to slave-like conditions on-site were inaccurate.
Earlier, a BYD executive claimed that "foreign forces and some Chinese media are deliberately tarnishing Chinese brands." The factory, still under construction, is part of BYD's plans to begin production in Brazil in late 2024 or early 2025. With an expected production capacity of 150,000 vehicles annually, the factory has become a symbol of China's increasing influence in Brazil. BYD has invested $620 million in the Bahia factory complex alone.
This investigation draws unwanted attention to BYD's global expansion efforts, which are already dominant in China. Brazilian authorities plan another meeting with the companies on January 7, where they intend to propose a deal.
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