São Paulo, Brazil — In a sobering development that brings human stories to the forefront of global industry, Brazilian labor prosecutors have filed a lawsuit against Chinese electric carmaker BYD, accusing it and two of its contractors—JinJiang and Tecmonta—of serious labor violations, including human trafficking and subjecting workers to “slavery-like conditions.”
The allegations stem from the construction of a BYD factory in the state of Bahia—part of BYD’s ambitious expansion in its largest market outside China. Behind the shining facade of technological innovation, prosecutors claim, lies a darker reality faced by hundreds of Chinese workers who were promised opportunity but instead faced hardship, broken promises, and inhumane treatment.
The lawsuit seeks 257 million reais (about US$45 million) in moral damages and demands additional individual compensation for each affected worker. Prosecutors also call for strict compliance with Brazilian labor laws and hefty fines—50,000 reais per infraction, per worker—to be imposed for each violation.
According to investigators, some 220 Chinese laborers were recruited by BYD’s contractors and flown into Brazil under false pretenses. Once in Bahia, they found themselves living and working under appalling conditions—overworked, underpaid, and isolated, far from home. Prosecutors say the workers were victims of international human trafficking.
Fábio Leal, a deputy labor prosecutor, emphasized that negotiations had been underway since late December, but no agreement could be reached. “They were promised decent jobs, but what they found was exploitation,” Leal said. All of the affected workers have since returned to China, but Leal assures that they will still be eligible to receive compensation. Responsibility now lies with BYD and its contractors in Brazil to prove those payments are made.
While BYD denies wrongdoing and asserts its commitment to human rights and cooperation with authorities, the legal battle now moves to the courts. However, prosecutors say a settlement remains possible—though now, it must be decided with judicial oversight.
“This isn’t just a case about legal violations,” Leal noted. “It’s about real people whose dignity was compromised. Our case is strong. We have evidence. And we must not turn a blind eye.”
As Brazil steps up its efforts to defend labor rights, this case sends a clear message: economic progress must not come at the expense of human dignity.