Brazil says workers at BYD construction site are victims of human trafficking

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A drone view shows BYD's new electric vehicle (EV) factory's construction site in Camacari, Brazil December 26, 2024. REUTERS/Joa Souza

Chinese EV company BYD’s factory construction site in Camacari, Brazil’s Bahia state, on Dec 26.

PHOTO: REUTERS

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Chinese workers found at a construction site for a factory owned by China’s electric vehicle (EV) producer BYD in Brazil’s Bahia state are victims of human trafficking, the Brazilian labour authorities said on Dec 26.

BYD and contractor Jinjiang Group have agreed to assist the 163 workers and house them in hotels until a deal to end their contracts is reached, Brazil’s Labour Prosecutor’s Office said in a statement issued after meeting representatives of both firms.

BYD did not immediately reply to a request for comment. Reuters was unable to reach Jinjiang for comment outside usual working hours.

However, the companies have questioned the authorities’ assessment, first announced on Dec 23, that the workers were operating under “slavery-like conditions”.

The parties are scheduled to meet again on Jan 7, according to the statement. A proposed deal by labour prosecutors will be presented to the two firms.

A deal could clear BYD and Jinjiang from an investigation by labour prosecutors, but the companies could still face scrutiny from labour inspectors and from federal prosecutors, who have requested the sharing of the evidence so that “measures can be adopted in the criminal sphere”, the statement said.

BYD has been building the factory in Bahia

to produce 150,000 cars initially

as part of plans to start production in Brazil, the Chinese EV company’s largest overseas market, in early 2025.

The factory has become an important symbol of China’s growing influence in Brazil and an example of a closer relationship between both countries. BYD has invested about US$620 million (S$842 million) to set up the Bahia factory complex alone. 

The reports of irregularities in Bahia could prove to be a major sticking point in their relations.

Brazil has long sought more Chinese investment. But China’s model of taking Chinese workers to the countries where it invests presents a challenge to local job creation, a priority for Brazilian President Luiz Inacio Lula da Silva. REUTERS

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