Brazil Blacklists BYD Following Human Trafficking Scandal

The Brazilian government has added the Chinese automaker BYD to a national registry of employers who have subjected workers to conditions analogous to slavery. This action follows a 2024 investigation into the construction of the company’s manufacturing plant in Camaçari, Bahia.

The registry, published by Brazil’s Labor Ministry (MPT), serves as a “list of shame” for companies found to have committed severe labor violations. Inclusion on this list carries significant reputational risks for BYD in Brazil, which is its largest market outside of China, and prevents the company from accessing certain types of loans from Brazilian banks.

The 2024 Factory Construction Scandal

The blacklisting stems from a December 23, 2024, surprise inspection conducted by the Brazilian Labour Public Ministry and other government agencies. During the raid at the Camaçari construction site, inspectors rescued 163 Chinese workers who had been hired by the contractor Jinjiang Group to build the plant.

Brazilian authorities characterized the conditions as degrading and slavery-like, stating that the workers were victims of human trafficking. The inspection revealed that workers were living in overcrowded lodgings without mattresses. In one instance, 31 workers shared a single bathroom, and food was found piled on the floor alongside personal belongings.

The investigation detailed several severe labor and human rights violations, including:

• The imposition of 12-hour shifts seven days a week without weekly breaks.
• The withholding of 70% of workers’ wages.
• The requirement of a security deposit that workers would forfeit if they ended their contracts early.
• The deprivation of passports and the requirement that workers obtain permission to leave their dormitories.
• Insufficient access to safe drinking water and inadequate protective gear.
• Allegations of physical abuse by supervisors.

workers who terminated their contracts early were reportedly required to repay the company for the cost of their trip to Brazil and were denied return tickets to their home country.

Legal Actions and Corporate Response

In May 2025, the Brazilian Labor Prosecutor’s Office filed a lawsuit against BYD. Following the initial December 2024 inspection, the Brazilian government suspended the issuance of visas to BYD workers until their legal rights could be guaranteed.

The 163 workers were moved to hotel accommodations after the site was shut down. By January 8, 2025, all affected workers had received termination payments and returned to China.

BYD Auto Brazil acknowledged that there were problems with the working conditions and stated that it had removed and barred those involved from the site. The company instructed its subcontractors to implement urgent corrective measures.

Jinjiang Group, the contractor responsible for the construction, rejected the assessment by Brazilian authorities. The group stated that the claim that workers were enslaved was not accurate and attributed the findings to mistranslations.

Operational Impact

Despite the legal proceedings and the company’s inclusion on the labor registry, the Camaçari plant remains operational. The facility, which the affected workers were hired to build, has produced more than 25,000 vehicles since its inauguration in October 2025.