Human Trafficking Claims Shake BYD Factory Project in Brazil
São Paulo — A troubling story is unfolding in Brazil, where Chinese car manufacturer BYD—widely known for its rapid global expansion—is facing serious legal action over alleged human rights violations at one of its most high-profile factory sites outside China.
Brazilian labor prosecutors have filed a lawsuit against BYD and its contractors, accusing them of subjecting 220 Chinese workers to “slavery-like conditions” while building a new factory in Bahia. The case also includes charges of human trafficking, claiming that these workers were brought into the country illegally and misled about the nature of their work and living conditions.
The lawsuit demands 257 million reais (about US$45 million) in collective moral damages, and potentially more in individual compensation for each worker affected. Prosecutors are also seeking court-mandated compliance with labor laws and an additional fine of 50,000 reais for every violation, per person.
Many of these workers have since returned to China, but the scars of their experience remain. According to Deputy Labor Prosecutor Fábio Leal, the workers were promised fair treatment and decent working conditions. Instead, they were exploited in ways that resemble forced labor. “They were brought here illegally and faced conditions that no human should be subjected to,” Leal said.
Since December, Brazilian authorities have been trying to negotiate with BYD and its contractors—JinJiang and Tecmonta—to reach a resolution, but talks collapsed earlier this year. Now, prosecutors say they are left with no choice but to pursue justice through the courts.
BYD, in a public statement, said it remains committed to human rights and is cooperating with Brazilian authorities. The company also emphasized that it will respond formally through legal channels.
While a courtroom battle now looms, Leal hasn’t ruled out a settlement. “Our case is solid and built on strong evidence,” he said. “But we’re still open to resolving this—through accountability and fair compensation for the lives that were affected.”
This case not only challenges BYD’s reputation, but also casts a spotlight on the often-hidden human cost behind global industrial projects.