Chinese automaker BYD faces a major lawsuit in Brazil over allegations of slave-like conditions for 220 Chinese workers at its new electric vehicle plant, raising questions about labor practices in China’s global manufacturing expansion.
At a Glance
- Brazilian prosecutors are suing Chinese EV maker BYD and two contractors over slave labor and human trafficking allegations
- 220 Chinese workers were reportedly held in degrading conditions, with passports confiscated and up to 70% of salaries withheld
- Workers lived in overcrowded housing without proper mattresses and faced armed guard monitoring
- Prosecutors seek $45.3 million in collective damages plus individual reparations
- BYD has terminated its contract with the accused contractor while claiming commitment to labor rights
Allegations of Modern Slavery at BYD’s Brazilian Plant
Brazilian labor prosecutors have launched a lawsuit against Chinese electric vehicle giant BYD and two contractors, alleging severe human rights violations at the company’s manufacturing plant under construction in Camacari, Bahia. The facility, set to become BYD’s largest electric car plant outside Asia, is now at the center of disturbing claims of worker exploitation. According to legal documents, investigators discovered 220 Chinese laborers subjected to conditions “analogous to slavery” at the site, raising alarm about labor practices in China’s expanding global manufacturing operations.
The lawsuit names BYD alongside China JinJiang Construction Brazil and Tonghe Equipamentos Inteligentes do Brasil Co. (now operating as Tecmonta Equipamentos Inteligentes Brasil Co.). These contractors allegedly managed the workforce at the site while engaging in multiple labor violations. Investigators found workers crammed into substandard accommodations, many without proper mattresses, with limited bathroom facilities shared by dozens of laborers. Physical signs of exploitation were also apparent, with workers showing skin damage from prolonged exposure to the sun without adequate protection.
Brazilian labor prosecutors filed a lawsuit on Tuesday against Chinese carmaker BYD , holding it responsible for human trafficking and "slavery-like conditions" for workers building a factory in its biggest market outside China. https://t.co/0P39p07c0u
— Reuters China (@ReutersChina) May 28, 2025
Coercion and Financial Exploitation
The allegations go beyond poor living conditions, extending to a sophisticated system of control and exploitation. Prosecutors claim the Chinese workers had their passports confiscated upon arrival in Brazil, effectively trapping them at the worksite. Many faced contract irregularities with illegal clauses that violated basic labor protections. Perhaps most egregiously, reports indicate that up to 70% of workers’ salaries were withheld, creating a form of debt bondage that prevented them from leaving the exploitative situation.
Further reinforcing the allegations of forced labor, workers were reportedly monitored by armed guards, creating an atmosphere of intimidation and preventing free movement. The Brazilian prosecution is seeking 257 million reais (approximately $45.3 million) in collective moral damages, plus additional individual payments to the workers affected by these alleged abuses. The civil suit was filed after the companies refused to sign a “conduct adjustment agreement” that would have addressed the violations without court proceedings.
🇨🇳🇧🇷BYD BUSTED: EV GIANT SUED FOR “SLAVERY-LIKE” CONDITIONS IN BRAZIL
Brazilian prosecutors just dropped a $45.5M lawsuit on Chinese EV titan BYD, accusing it of turning a factory site into a human rights dumpster fire.
220 Chinese workers were rescued from squalid living… pic.twitter.com/vLLeByJgBv
— Mario Nawfal (@MarioNawfal) May 28, 2025
Corporate Responses and Accountability
In response to the serious allegations, BYD has terminated its contract with the Jinjiang contractor implicated in the labor abuses. The company has issued statements emphasizing its commitment to ethical labor practices while attempting to distance itself from the alleged violations. Jinjiang has denied the slavery allegations, setting the stage for what could be a protracted legal battle with significant implications for international business practices and corporate accountability.
The Chinese foreign ministry has also weighed in on the case, with spokesperson Mao Ning stating that China “places great importance on protecting and safeguarding workers’ legitimate rights and interests” and expects Chinese companies to “operate in compliance with laws and regulations.” The case highlights growing scrutiny of labor practices in global supply chains, particularly as Chinese companies expand manufacturing operations internationally. For American consumers considering electric vehicles, the allegations raise important questions about the human cost behind the production of affordable EVs.
