Chinese companies in Brazil clash over forced labor at auto plant

Brazilian labor authorities said on Thursday that Chinese workers at a construction site in Brazil for a factory owned by Chinese electric vehicle maker BYD are victims of human trafficking, a growing controversy in the Chinese company’s biggest overseas market, Reuters reported.

BYD and contractor Jinjiang Group have agreed to help and house 163 workers in hotels until a deal is reached to end their contracts, Brazil’s labor prosecutor’s office said in a statement after meeting with representatives from both companies.

Jinjiang Group said in a social media post retweeted by a BYD spokesman that the depiction of the workers as “slaves” was inaccurate and that there was a misunderstanding in the translation.

BYD initially said it had cut ties with Jinjiang Group, but a BYD official later accused “foreign forces” and some Chinese media of deliberately tarnishing Chinese brands and the country and undermining China-Brazil relations!

The Chinese Foreign Ministry said on Wednesday that its embassy in Brazil is in contact with the Brazilian government to investigate and address the situation.

Brazilian prosecutors said they will meet again with the companies on January 7, 2025, and propose a settlement deal.

The statement said the potential deal could clear BYD and Jinjiang from an investigation by labor prosecutors, but they could face scrutiny from labor inspectors and federal prosecutors, who have asked for evidence to be exchanged so that criminal action can be taken!