Brazil puts China's BYD on list of shame for workers' past slavery-like conditions

Key Points

• Brazil's Labor Ministry has placed BYD on its registry of employers linked to conditions similar to slavery, following a 2024 scandal at its Brazilian plant.
• The listing lasts two years unless a court orders removal and restricts BYD from certain types of loans from Brazilian banks.
• BYD signed a deal with labor prosecutors but not with labor inspectors, leaving it on the registry despite efforts to address the issue.
• The scandal involved 163 Chinese workers hired through contractor Jinjiang Group, who faced alleged human trafficking and abusive contracts.

Full Details

Brazil's Labor Ministry has officially listed Chinese automaker BYD on its registry of employers linked to conditions similar to slavery, stemming from a 2024 scandal where 163 Chinese workers at BYD's Brazilian plant were alleged victims of human trafficking and abusive contracts. The listing, which carries reputational risk and bars BYD from certain Brazilian bank loans for two years, was imposed after BYD signed a deal with labor prosecutors but not with labor inspectors. President Lula had inaugurated the plant in October, showcasing Brazil-China ties, but officials argue BYD is responsible for supervising contractors like Jinjiang Group, which hired the workers. BYD has denied prior knowledge of violations, while the plant has already produced over 25,000 vehicles. The case underscores challenges in enforcing labor standards on global firms expanding in emerging markets.