Unique-Brazil yanks temp work visas for China’s BYD after trafficking claims

By Lisandra Paraguassu

BRASILIA (Reuters) -Brazil has stopped issuing momentary work visas for BYD (SZ:002594), the Ministry of Overseas Affairs mentioned on Friday, within the wake of accusations that some staff at a website owned by the Chinese language electrical automobile producer had been victims of human trafficking.

The announcement got here days after labor authorities mentioned they discovered 163 Chinese language staff who had been delivered to Brazil irregularly in “slavery-like” circumstances on the BYD manufacturing unit development website within the northeastern state of Bahia. The employees have been employed by contractor Jinjiang Group, which has denied any wrongdoing.

Later, the authorities additionally mentioned the employees have been victims of human trafficking. In accordance with the overseas ministry, the employees entered Brazil on momentary work visas.

The manufacturing unit has change into a logo of China’s rising affect within the South American nation and an instance of a better relationship between each nations. BYD has invested $620 million to arrange the Bahia manufacturing unit advanced alone.

Brazil is the largest abroad marketplace for BYD, which didn’t instantly reply to a request for touch upon the ministry’s determination.

The Chinese language EV maker has mentioned it plans to begin manufacturing in Brazil early subsequent yr with an preliminary annual output of 150,000 automobiles. 

Brazil’s Ministry of Justice mentioned in a separate assertion on Friday that if irregularities discovered by prosecutors within the BYD manufacturing unit are confirmed, it could revoke the residence permits it had issued to the Chinese language staff.

The Ministry of Justice had already despatched a request to the Ministry of Overseas Affairs to droop BYD momentary visa issuance on Dec. 20, three days earlier than the labor authorities’ findings have been made public, in keeping with a supply with data of the communication.

The order was then forwarded to Brazil’s embassy in Beijing, the supply added.

In a social media put up on Thursday, which was reposted by a BYD spokesperson, Jinjiang Group rejected the Brazilian authorities’ accusations concerning the work circumstances on the Bahia website.

The contractor mentioned the portrayal of the employees as “enslaved” was inaccurate and that there had been translation misunderstandings.

BYD and Jinjiang Group have agreed to help and home the 163 staff in resorts till a deal to finish their contracts is reached, the Brazilian Labor Prosecutor’s Workplace mentioned in a press release on Thursday, after assembly representatives from each companies.

Practically one in 5 automobiles BYD offered outdoors of China within the first 11 months of 2024 was in Brazil.