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

By Lisandra Paraguassu

BRASILIA (Reuters) -Brazil has stopped issuing non permanent work visas for BYD (SZ:002594), the Ministry of International Affairs stated on Friday, within the wake of accusations that some staff at a web site owned by the Chinese language electrical car producer had been victims of human trafficking.

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

Later, the authorities additionally stated the employees had been victims of human trafficking. In response to the overseas ministry, the employees entered Brazil on non permanent work visas.

The manufacturing unit has turn out to be a logo of China’s rising affect within the South American nation and an instance of a better relationship between each international locations. BYD has invested $620 million to arrange the Bahia manufacturing unit complicated alone.

Brazil is the most important 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 stated it plans to begin manufacturing in Brazil early subsequent 12 months with an preliminary annual output of 150,000 vehicles. 

Brazil’s Ministry of Justice stated in a separate assertion on Friday that if irregularities discovered by prosecutors within the BYD manufacturing unit are confirmed, it might 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 International Affairs to droop BYD non permanent visa issuance on Dec. 20, three days earlier than the labor authorities’ findings had been made public, in response to a supply with information 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 situations on the Bahia web site.

The contractor stated 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 motels till a deal to finish their contracts is reached, the Brazilian Labor Prosecutor’s Workplace stated in a press release on Thursday, after assembly representatives from each corporations.

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