Brazil blacklists BYD over alleged slave-like labor practices, damaging its global image.

Brazil has blacklisted BYD over allegations of slave-like labor practices, following discoveries of exploitation and deplorable conditions among Chinese workers. While this won't directly impact production, it risks affecting confidence and access to funding in key markets.

On April 7, 2026, at 10:03 AM, Reuters reported that the Brazilian government had placed BYD, a major Chinese electric car manufacturer, on its register of employers who treat workers in a manner akin to slavery, following a scandal in 2024 in which Chinese workers were accused of human trafficking and being subjected to exploitative contracts.

The list, released by Brazil's Ministry of Labor, could damage BYD's reputation in the Brazilian market, which is the company's largest market outside of China.

Being blacklisted prevents BYD from accessing certain types of loans from Brazilian banks. However, this measure does not affect the operations of the car manufacturing plants where these workers are employed.

163 Chinese workers hired through the contracting company Jinjiang were reportedly required to hand over their passports to the company, with most of their earnings being transferred back to China. They also had to pay a security deposit of nearly $900, which would only be refunded after completing six months of work.

During an inspection, officials discovered that the workers were living in cramped conditions, without beds, and 31 people crammed into a single house with only one bathroom. Food and supplies were piled on the floor, conditions described as appalling and degrading.

This case sparked widespread international criticism, including within China itself, resulting in months of delays in the factory construction. Although BYD stated that it was unaware of the violations until media reports emerged, and the contractor Jinjiang denied the allegations, Brazilian authorities insisted that BYD was responsible as the primary contractor.

Although BYD reached an agreement with the labor attorney, it did not reach an agreement with the labor inspector, resulting in it remaining on the blacklist. The company will remain on this list for two years unless a court orders its removal.

Reference: www.reuters.com

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