Exclusive: BYD faces labor probe in Brazil over irregular visas for Chinese workers

Electric vehicle manufacturer BYD is under investigation in Brazil after hundreds of Chinese workers were brought into the country on irregular visas to work on a factory construction in Bahia, with many found in "slavery-like conditions," according to labor authorities, Reuters reports.

According to Reuters, electric vehicle producer BYD (Build Your Dreams) faces scrutiny in Brazil after hundreds of Chinese workers were brought into the country on irregular visas, according to a key labor inspector. The workers, who were employed to build a factory in Bahia, were found to be in what Brazilian authorities described as “slavery-like conditions.”

Liane Durao, a labor inspector with Brazil’s Ministry of Labour, told Reuters that 163 workers employed by BYD’s contractor, Jinjiang Group, were rescued in December after authorities discovered they had been working under illegal and abusive conditions. The workers were subsequently sent back to China, with the contractor agreeing to cover the costs of their return.

BYD, which has invested $620 million in its Bahia factory to produce electric vehicles for the Brazilian market, has pledged to comply with Brazilian labor laws for the workers who will remain in the country. Durao confirmed that the company had committed to improving working conditions to meet local standards.

The labor inspector also noted that BYD would be fined for each worker found in violation of the country’s labor regulations, although the total amount of the fine has not been disclosed.

While BYD has denied the allegations and claims the visas were issued properly, the investigation into labor violations has raised concerns about working conditions in Chinese-owned enterprises abroad. The probe into BYD could complicate Brazil's relationship with China, which has become a major investor in the country.

Labor authorities are continuing to monitor the situation, ensuring that no remaining workers are subjected to exploitation as the investigation progresses. The case highlights broader issues surrounding foreign investment in Brazil and local job creation, a priority for President Luiz Inácio Lula da Silva.

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