BRASILIA (Reuters) – Brazilian authorities have suspended temporary work visas for BYD ( SZ: ) following allegations that some workers at a site owned by the Chinese electric vehicle maker were victims of human trafficking, the Foreign Affairs Ministry said on Friday.
The announcement came days after labor authorities said they found 163 Chinese workers in “slavery-like” conditions at a BYD factory site in the northeastern state of Bahia. The workers were employed by contractor Jinjiang Group, which has denied any wrongdoing.
Later, authorities also said the workers were victims of human trafficking.
According to the foreign ministry, the workers entered Brazil on temporary work visas. Labor authorities said earlier this week that the workers had been brought to Brazil irregularly.
BYD did not immediately respond to a request for comment on the ministry’s decision.
In a social media post on Thursday, which was reposted by a BYD spokesperson, Jinjiang Group rejected allegations by Brazilian authorities about working conditions at the Bahia site.
The contractor said the depiction of the workers as “enslaved” was inaccurate and that there was a misunderstanding in translation.
BYD said it plans to start production in Brazil early next year with an initial annual output of 150,000 cars. Almost one in five BYD cars sold outside China in the first 11 months of 2024 was in Brazil.
BYD and Jinjiang Group have agreed to help house 163 workers in hotels until an agreement is reached to terminate their contracts, Brazil’s labor prosecutors said Thursday after meeting with representatives of both companies.
