The Brazilian government has officially added the Chinese electric vehicle (EV) giant BYD to its “dirty list” of employers linked to modern slavery. The decision, announced by the Labor Ministry, follows an investigation into the construction of the company’s manufacturing hub in Bahia.
Key Details of the Blacklisting:
- The Violations: The blacklisting stems from a 2024 raid that uncovered approximately 163 Chinese laborers working in “degrading conditions.” Inspectors found workers living in overcrowded housing without mattresses, restricted from leaving their dormitories, and forced to work excessive hours. Additionally, many workers had their passports and wages withheld by subcontractors.
- Legal Consequences: Being added to this registry (often called the “list of shame”) carries severe financial and reputational penalties. BYD is now barred from accessing certain lines of credit from Brazilian state banks for a period of two years.
- BYD’s Response: While the company previously settled a lawsuit with labor prosecutors and claimed it was unaware of the abuses committed by its contractors, it failed to reach a similar agreement with labor inspectors to avoid the blacklist. BYD has historically denied direct responsibility, though Brazilian authorities maintain that the automaker is liable for the oversight of its supply chain.
Wider Impact
This move is a significant blow to BYD’s reputation in Brazil, its largest market outside of China. Despite the blacklisting, the company’s sole automotive plant in the country—which has already produced over 25,000 vehicles—remains operational. The case highlights the growing tension between Brazil’s push for green energy investment and its strict enforcement of labor rights.