The Jinjiang Group, a contractor linked to Chinese electric vehicle giant BYD, has found itself at the center of an international labor dispute following accusations by Brazilian authorities of subjecting workers to slavery-like conditions. The allegations, which emerged on Wednesday, claimed that 163 Chinese nationals were working under exploitative circumstances at a construction site for a BYD-owned factory in Bahia state. Jinjiang has vehemently denied the claims, attributing them to cultural misunderstandings and translation errors that have distorted the facts.
Brazilian labor inspectors allege that the workers faced conditions violating fundamental labor rights, including claims that their passports were confiscated, effectively restricting their freedom of movement. These accusations have sparked significant concern both domestically and internationally, putting BYD’s high-profile expansion plans in Brazil under an unwelcome spotlight. Responding swiftly, BYD announced that it had severed ties with the firm responsible for hiring the workers and pledged full cooperation with Brazilian authorities to ensure the situation is resolved transparently.
In a statement posted on its official Weibo account, Jinjiang criticized the allegations as unfounded and deeply harmful. “The portrayal of our employees as ‘enslaved’ is not only inconsistent with the facts but also a grave insult to their dignity and human rights,” the company asserted. It further disclosed that the workers had collectively signed a letter refuting the allegations, emphasizing their contentment with the work environment and their dismay at the accusations.
Li Yunfei, BYD’s general manager of branding and public relations, amplified Jinjiang’s message by sharing it on his personal Weibo account. He accused certain “foreign forces” and segments of the Chinese media of intentionally maligning Chinese companies and attempting to disrupt the growing economic ties between China and Brazil. Li’s remarks framed the controversy as part of a broader narrative aimed at discrediting China’s global industrial ambitions.
China’s Ministry of Foreign Affairs has also intervened, with spokesperson Mao Ning confirming that the Chinese embassy in Brazil is actively working with local authorities to ascertain the truth. The diplomatic engagement underscores the potential ramifications of the incident, not just for BYD but also for China’s broader relationship with Brazil, a key partner in its Belt and Road Initiative and an essential market for its EV industry.
The BYD factory in Bahia, designed to produce 150,000 electric vehicles annually during its initial phase, represents a cornerstone of the company’s efforts to establish a strong manufacturing presence in Brazil. The investment is particularly strategic given Brazil’s decision to increase tariffs on imported EVs from 18% to 35% by 2026, a move that underscores the importance of localized production for maintaining competitiveness in the market.
Jinjiang has argued that the allegations stem from misunderstandings arising during inspections, claiming that questions posed by Brazilian authorities were suggestive and led to inaccurate interpretations. To bolster its defense, the company released a video showing a group of workers standing together, with one individual reading a letter reportedly signed by the group. The letter addressed specific claims, explaining that 107 workers had willingly submitted their passports to the company to facilitate the issuance of temporary ID certificates as required by Brazilian regulations.
Speaking in the video, one worker stated, “We came to Camacari with enthusiasm and a shared goal of contributing to the successful construction of Brazil’s largest new energy vehicle project. We have complied with all local laws and worked diligently to ensure the project’s timely completion.”
Despite Jinjiang’s attempts to refute the allegations, the situation has brought renewed attention to the challenges of managing labor practices in international projects. With Brazil emerging as a pivotal market for EV manufacturers, the incident underscores the importance of establishing transparent and ethical labor standards that align with local and international expectations.
