Controversy Surrounds BYD's Brazilian Expansion Amidst Trafficking Allegations

Brazilian labor authorities have accused Chinese electric vehicle company BYD and its contractor, Jinjiang Group, of human trafficking at a construction site in Bahia. The allegations highlight challenges in China's investment model and its relations with Brazil as BYD seeks to expand globally.

Brazilian labor authorities have accused Chinese electric vehicle firm BYD and its contractor, Jinjiang Group, of human trafficking at a construction site in Bahia. The accusations are part of a broader controversy for BYD, which is rapidly expanding into its largest overseas market.

The Labor Prosecutor's Office of Brazil stated that the companies agreed to support and house 163 workers in hotels while discussions to terminate their contracts continue. BYD initially severed ties with Jinjiang but later blamed 'foreign forces' for smearing its brand and harming Sino-Brazilian relations.

The allegations cast a shadow over BYD's growth strategy in Brazil, where the automaker plans to establish a major manufacturing base. The situation also challenges China's investment model, which involves employing Chinese workers overseas, impacting local job creation efforts favored by President Luiz Inacio Lula da Silva.

(With inputs from agencies.)