This is a decision that would "undermine the friendship between China and Brazil", BYD's communications officials warned. This week, Brazilian prosecutors ruled and decided to prosecute the Chinese automaker for its work in the northeast of the country, aimed at creating a new production site in one of the brand's most strategic countries.
At the end of December 2024, authorities revealed particularly harsh conditions for workers from China, whose working conditions were compared to slavery. BYD is not directly guilty on paper, as the workers had been hired by two of its subcontractors, but Brazil has decided to hold the brand accountable.
At the Bahia State Prosecutor's Office, the Bahia Regional Ministry of Public Works (MPT) accuses the three companies of having illegally brought 220 Chinese workers into Brazilian territory as part of the construction of the new factory, north of Salvador. In a statement, prosecutors reiterated the charges against BYD and its subcontractors, in light of the findings made by the authorities on site.
"Public officials found workers crammed into housing lacking the minimum standards of comfort and hygiene, with armed guards, confiscated passports, employment contracts with illegal clauses, exhausting work schedules, and no weekly rest." Last December, the Brazilian news agency Agência Pública had already shared these findings, highlighting the stranglehold BYD's subcontractors had on their workers, delaying their pay so they wouldn't decide to return to China before the end of their contract.
BYD Speaks Out
BYD was quick to defend itself against the accusations. After turning a blind eye, "reiterating its commitment to fully respecting Brazilian legislation, particularly that concerning the protection of workers' rights and human dignity", the manufacturer took a stand. In another statement published later, BYD declared that the authorities' attacks "defamed Chinese brands, defamed China, and attempted to undermine the friendship between China and Brazil".
For its part, Jinjiang Construction Brazil Ltd, responsible for the construction of the factory, denied the allegations. Tonghe Intelligent Equipment, the other subcontractor, as well as BYD, refused to sign a conduct adjustment agreement proposed by Brazilian authorities, according to information shared by the MPT, which subsequently ordered a fine of 257 million Brazilian reals, or $45.1 million, for the three companies.
Source: Fortune
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