Brazilian Authorities Suspend Temporary Work Visas for BYD

BRASILIA (Reuters) – Brazilian authorities have suspended the issuance of temporary work visas for BYD (SZ:002594) following accusations that some workers at a site owned by the Chinese electric vehicle producer had been victims of human trafficking, the Ministry of Foreign Affairs stated on Friday.

The announcement occurred just days after labor authorities discovered 163 Chinese workers in "slavery-like" conditions at the BYD factory construction site in northeastern Bahia. These workers were employed by contractor Jinjiang Group, which has denied any wrongdoing.

Later, authorities confirmed that the workers were indeed victims of human trafficking. According to the foreign ministry, these workers had entered Brazil on temporary work visas, with earlier statements indicating that their entry was irregular.

BYD did not provide an immediate comment on the ministry's decision. On social media, which was later shared by a BYD spokesperson, Jinjiang Group rejected the Brazilian authorities' claims about working conditions at the Bahia site. The contractor asserted that the portrayal of the workers as "enslaved" was inaccurate and attributed the misunderstandings to translation issues.

BYD intends to commence production in Brazil early next year with an expected initial output of 150,000 cars. Notably, nearly one in five cars sold by BYD outside China in the first 11 months of 2024 was in Brazil.

BYD and Jinjiang Group have agreed to provide assistance and accommodations for the 163 workers in hotels until an agreement to terminate their contracts is finalized, according to Brazil's Labor Prosecutor's Office, which issued a statement post-meeting with representatives from both companies. (This story has been refiled to correct a typo in the headline)