Beijing, China — Jinjiang Construction Brazil Ltd., a contractor for the Chinese electric vehicle (EV) giant BYD, has vehemently denied allegations of "slave-like conditions" at its construction site for BYD's new factory in Brazil's Bahia state. This statement follows recent inspections by local Brazilian authorities, which revealed evidence of forced labor affecting over 160 Chinese workers.
Authorities reported on December 24, 2023, finding these workers living and working under degrading conditions. The workers allegedly endured long hours, some exceeding local labor laws, and seven-day workweeks. Reports indicated alarming situations such as inadequate sleeping arrangements—workers reportedly slept on beds devoid of mattresses—and insufficient sanitary facilities, with only one toilet for every 31 laborers. The situation was described as precarious, with 107 workers' passports reportedly withheld by the contractor.
Jinjiang responded strongly to these claims, stating on their Weibo account, "Being unjustly labeled as 'enslaved' has made our employees feel their dignity has been insulted and their human rights violated, seriously hurting the dignity of the Chinese people." The company insisted these accusations have greatly harmed the reputation of its workforce and the larger Chinese community.
Local authorities from the Brazilian labor prosecutor’s office conducting inspections since November found evidence confirming these claims and described the workers' living conditions as extremely poor. "The situation poses serious risks, and the living quarters were sparsely equipped, with mixed food supplies and personal belongings, making them unsuitable for human habitation," the authorities stated.
The contractor also released images of letters from its Chinese employees, who articulated feelings of being misunderstood and explained their desire to continue working at the site. Jinjiang stated they had also shared video evidence where workers expressed gratitude for their positions and reaffirmed their wish to remain employed at the facility: "We cherish this work and want to stay and work here," they said.
Following the allegations, BYD announced on the same day of the reports’ release it had decided to sever ties with the Jinjiang branch responsible for the construction project. They confirmed actions were being undertaken to relocate the affected workers to nearby hotels, ensuring more humane living conditions. "We have been proactive to change working conditions at the construction site, informing our contractors of the need for immediate adjustments,” BYD stated.
Li Yunfei, BYD’s General Manager of branding and public relations, highlighted concerns about international perceptions, accusing "foreign forces" of deliberately maligning both Chinese brands and the bilateral relations between China and Brazil. His sentiments were echoed by Jinjiang, which insisted the portrayal of their workers as enslaved was grossly inconsistent with the facts.
The controversy surrounding BYD's expansion efforts occurs against the backdrop of Brazil's growing electric vehicle market. BYD is building what is poised to be its largest factory outside China, with plans to produce 150,000 vehicles annually, targeting production start dates as early as 2024 or early 2025. With Brazil’s tariffs on imported EVs set to increase from 18% to 35% by mid-2026, this factory is central to BYD's operational strategy.
Concerns continue to mount as the Chinese embassy engages with Brazilian officials to clarify and address the inspections surrounding worker conditions. Mao Ning, spokesperson for China's foreign ministry, also indicated the embassy is closely monitoring the situation on the ground.
The situation encapsulates broader issues related to labor practices within international construction projects, particularly concerning migrant workers. There seems to be a friction between claims of inadequate worker conditions and the denials from both Jinjiang and BYD. Despite Jinjiang’s push to clear its reputation and maintain local operations, serious questions linger about the treatment of workers and the moral and ethical responsibilities of companies operating abroad.
This incident serves as a stark reminder of the sometimes dire conditions faced by laborers in the global economy, as large corporations like BYD expand their manufacturing presence worldwide, and raises important questions about accountability and transparency within these vast supply chains.
