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Prosecutors in Brazil have announced a major lawsuit against Chinese electric vehicle giant BYD, accusing it of subjecting hundreds of Chinese laborers to slave-like working conditions during the construction of a factory in the Brazilian state of Bahia.
Some shit you should know before you read: If you’re unaware, BYD is essentially the Tesla of China and has really come to prominence as it’s backed by the Chinese government. Originally founded as a battery company, BYD has evolved into one of the world’s largest EV producers, surpassing Tesla in global EV sales in certain regions. Western countries, particularly the US, have raised concerns over BYD’s ability to undercut domestic automakers due to subsidies and favorable policies from China, which have led to calls for trade restrictions and proposed tariffs aimed at protecting local industries. Despite the scrutiny, BYD is rapidly expanding its international footprint, opening manufacturing plants around the world.
What’s going on now: In a notable development, Brazilian prosecutors formally announced a lawsuit against Chinese electric vehicle manufacturer BYD and two of its contractors—China JinJiang Construction Brazil and Tecmonta Equipamentos Inteligentes—accusing them of subjecting Chinese laborers to conditions equivalent to modern-day slavery. The legal action stems from a raid in December at the construction site of BYD’s new factory in Camaçari, in the northeastern state of Bahia. During the operation, authorities “rescued” 220 Chinese workers—163 employed by JinJiang and 57 by Tecmonta—who had allegedly been trafficked into Brazil under false pretenses with visas that did not match their job functions.
According to the prosecutors, the workers were subjected to extremely degrading living and working conditions, including overcrowded dormitories with inadequate sanitation—such as a single toilet shared by 31 people—and beds without mattresses. They were reportedly forced to wake as early as 4 am to begin their days. Many had up to 70% of their wages withheld and faced costs for terminating their contracts. Some had their passports confiscated, making them effectively unable to leave and fully dependent on their employers, circumstances that prosecutors argue meet international definitions of human trafficking and forced labor.
The lawsuit is seeking roughly $50 million (Brazilian currency) in damages and $50,000 per labor rights violation per affected worker. The suit also demands that the companies implement and adhere to Brazilian labor laws and international human rights standards.
BYD has responded and said it is cooperating fully with the investigation. A company spokesperson previously dismissed the allegations as part of a campaign to “discredit Chinese enterprises.”
