Labor exploitation scandal: Brazil adds Chinese automaker BYD to «slave register»

Brazilian authorities have made a high-profile decision regarding Chinese auto giant BYD, including the company on an official list of employers involved in creating slavery-like working conditions. This was the result of a high-profile scandal in 2024 related to the exploitation of foreign workers.

According to Reuters, the investigation focused on Chinese workers, who, according to the investigation, could be recruited through schemes that have signs of human trafficking. It also involved contracts with significant abuses and violations of labor rights.

The list, published by the Brazilian Ministry of Labor, poses serious reputational risks for the company, especially given that Brazil is BYD’s largest market after domestic China. Such a status can negatively affect the trust of investors and partners, as well as complicate the company's further expansion in the region.

In addition to image losses, inclusion in this list also has practical consequences. In particular, the company loses access to certain types of credit from Brazilian banks. At the same time, this decision does not directly affect the activities of BYD's only car plant in the country, which was built by the workers involved in the scandal.

The Jinjiang Group, a subcontractor used by BYD to hire labor, was also at the center of the accusations. It was this company that was responsible for attracting 163 workers whose working conditions raised suspicions of violations. Jinjiang Group representatives reject all accusations, insisting on the legality of their actions.

BYD previously stated that they were not informed of possible violations until the information appeared in the Brazilian media in late November 2024. The company stressed that it relied on the contractor to organize the work.

However, Brazilian officials take a different position. They emphasize that the ultimate responsibility for working conditions lies with the client of the work - in this case, BYD. In their opinion, the company should have exercised proper control over the activities of its contractors and ensured compliance with labor standards.