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    Home > Top Stories > BYD contractor denies ‘slavery-like conditions’ claims by Brazilian authorities
    Top Stories

    BYD contractor denies ‘slavery-like conditions’ claims by Brazilian authorities

    Published by Uma Rajagopal

    Posted on December 26, 2024

    3 min read

    Last updated: January 27, 2026

    Image depicting the BYD factory construction site in Brazil as Jinjiang Group refutes accusations of slavery-like conditions for workers. The article discusses the ongoing dispute between Brazilian authorities and BYD's contractor.
    Jinjiang Group denies claims of slavery-like conditions at BYD factory in Brazil - Global Banking & Finance Review
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    Tags:sustainabilityinnovationcompliance

    Quick Summary

    SHANGHAI/BEIJING (Reuters) -Jinjiang Group, a contractor for Chinese electric vehicle maker BYD, said on Thursday Brazilian authorities’ portrayal of their employees as “enslaved” was inconsistent with the facts and that there were translation misunderstandings.

    SHANGHAI/BEIJING (Reuters) -Jinjiang Group, a contractor for Chinese electric vehicle maker BYD, said on Thursday Brazilian authorities’ portrayal of their employees as “enslaved” was inconsistent with the facts and that there were translation misunderstandings.

    Brazilian labor authorities had on Wednesday said they found 163 Chinese nationals working in “slavery-like conditions” at a construction site for a BYD-owned factory in Brazil’s Bahia state. BYD said then that it had cut ties with the firm that hired the workers and was working with authorities.

    “Being unjustly labeled as ‘enslaved’ has made our employees feel that their dignity has been insulted and their human rights violated, seriously hurting the dignity of the Chinese people. We have signed a joint letter to express our true feelings,” Jinjiang said on its official Weibo account.

    Their statement was reposted by Li Yunfei, general manager of branding and public relations at BYD, on his own Weibo account. He accused “foreign forces” and some Chinese media of “deliberately smearing Chinese brands and the country and undermining the relationship between China and Brazil”.

    A BYD representative directed Reuters to Li’s Weibo post when asked about Jinjiang’s comments and the situation. Jinjiang did not respond to a request for comment from Reuters.

    BYD has been building the factory with an annual capacity of producing 150,000 cars initially in Brazil, the Chinese EV giant’s largest overseas market, as part of plans to start production there in 2024 or early 2025.

    Brazil is poised to hike tariffs on imported EVs to 35% in July 2026 from 18% currently.

    On Wednesday, China’s foreign ministry spokesperson Mao Ning said the Chinese embassy in Brazil was communicating with Brazilian counterparts to verify the situation and handle it.

    Jinjiang said there had been translation and cultural difference issues that had led to the situation, and that the questions from the Brazilian inspectors had been “suggestive”. It also posted a video showing a group of Chinese workers in front of the camera with one of them reading out a letter that Jinjiang said the workers have jointly signed.

    The letter said, for instance, that 107 workers had handed their passports to the company for help with applying for a temporary ID certificate in Brazil. The Brazilian labor inspectors had said that the workers had had their passports withheld by the company.

    “We are very happy to come to Camacari to work,” an unidentified Chinese male said in the video.

    “We have been complying with laws and regulations, working hard during the period with a hope that the construction of the biggest new energy vehicle project in Brazil could be completed as soon as possible,” he added.

    (Reporting by Beijing and Shanghai Newsroom; editing by Christian Schmollinger and Mark Heinrich)

    Frequently Asked Questions about BYD contractor denies ‘slavery-like conditions’ claims by Brazilian authorities

    1What is a contractor?

    A contractor is a person or company hired to perform specific tasks or services, typically under a contract. In the context of construction, contractors manage projects and employ workers to complete the work.

    2What are 'slavery-like conditions'?

    Slavery-like conditions refer to situations where workers are subjected to severe exploitation, often involving forced labor, poor working conditions, and lack of freedom. These conditions violate basic human rights.

    3What is compliance in business?

    Compliance refers to the process of adhering to laws, regulations, and guidelines relevant to a business. It ensures that companies operate within legal frameworks and maintain ethical standards.

    4What is cultural misunderstanding?

    Cultural misunderstanding occurs when individuals from different cultural backgrounds misinterpret each other's behaviors, language, or practices, often leading to conflicts or miscommunications.

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