Human Trafficking Allegations Cast Shadow on BYD's Brazilian Expansion

Chinese workers at BYD's factory site in Brazil's Bahia were identified as human trafficking victims. The company and contractor Jinjiang Group are negotiating contract terminations for 163 workers. Allegations of slavery-like conditions create a potential diplomatic issue amid China's deepening investment in Brazil.

In a recent development, Brazilian labor authorities have accused Chinese electric vehicle giant BYD and its contractor Jinjiang Group of human trafficking. Workers found at BYD's construction site in Bahia are reportedly victims, escalating the situation into a critical diplomatic concern.

Both BYD and Jinjiang Group have pledged to support the 163 affected workers, accommodating them in hotels until a deal can be reached to terminate their contracts. However, the companies challenge the allegations of 'slavery-like conditions,' as highlighted by labor authorities on December 23.

Amid pending investigations, both companies are set to meet with labor prosecutors on January 7. China's increasing investment in Brazil, including BYD's $620 million factory in Bahia, underpins the broader context of these allegations, potentially complicating bilateral relations as Brazil seeks local job creation.

(With inputs from agencies.)