The Jinjiang Group, a contractor for the renowned Chinese electric vehicle (EV) manufacturer BYD, has strongly denied allegations from Brazilian labor authorities that described the conditions of its employees as akin to slavery. In a public statement issued on Thursday, the company rejected these claims, asserting that the accusations were unfounded and arose from significant misunderstandings, including issues related to translation.
The controversy emerged on Wednesday when Brazilian authorities reported finding 163 Chinese nationals allegedly working under “slavery-like conditions” at a construction site for a BYD-owned factory in Bahia state. The allegations suggested exploitative practices, including the withholding of workers’ passports. BYD responded promptly by announcing that it had severed ties with the firm responsible for hiring the workers and was fully cooperating with Brazilian authorities to address the situation.
Jinjiang, however, disputed the claims in an official post on its Weibo account, stating, “Being unjustly labeled as ‘enslaved’ has deeply insulted our employees, damaging their dignity and human rights. This mischaracterization not only hurts the individuals involved but also offends the dignity of the Chinese people as a whole.” The company revealed that its employees had collectively signed a letter to express their feelings about the allegations, underscoring their dissatisfaction with what they perceive as a distortion of the facts.
The statement was amplified by Li Yunfei, BYD’s general manager of branding and public relations, who reposted Jinjiang’s comments on his personal Weibo account. Li went further, alleging that “foreign forces” and certain Chinese media outlets were engaged in a deliberate campaign to tarnish Chinese brands, destabilize bilateral relations between China and Brazil, and undermine the credibility of China’s growing influence in global industries.
When approached for comment, a BYD representative referred to Li’s Weibo post as the company’s official position. Meanwhile, Jinjiang refrained from responding to specific inquiries from international media outlets, including Reuters.
China’s Ministry of Foreign Affairs also weighed in on the matter. During a routine briefing on Wednesday, spokesperson Mao Ning stated that the Chinese embassy in Brazil was in active communication with Brazilian authorities to ascertain the facts and ensure the situation was addressed appropriately.
The disputed construction project is part of BYD’s broader strategy to expand its footprint in Brazil, which has emerged as its largest overseas market. The factory, slated to begin production by 2024 or early 2025, is expected to produce 150,000 electric vehicles annually during its initial phase. This expansion comes as Brazil prepares to increase tariffs on imported EVs from the current 18% to 35% by July 2026, further emphasizing the strategic importance of local manufacturing for companies like BYD.
Jinjiang attributed much of the controversy to “cultural misunderstandings” and alleged that Brazilian labor inspectors asked “suggestive questions” that led to misinterpretations. As part of its defense, Jinjiang released a video featuring a group of its workers standing before the camera, with one individual reading a letter reportedly signed by the employees. The letter addressed key issues, such as the claim regarding passport withholding, explaining that 107 workers had voluntarily handed over their passports to facilitate the application for temporary ID certificates in Brazil.
In the video, a Chinese worker expressed the group’s sentiments, stating, “We are very happy to come to Camacari to work. We have adhered to local laws and regulations while working diligently, with the hope that the construction of Brazil’s largest new energy vehicle project will be completed successfully and promptly.”
Despite the strong denials from Jinjiang and BYD’s swift actions to distance itself from the allegations, the situation has spotlighted the challenges of cross-cultural collaboration in global business operations. The controversy also underscores the potential for misunderstandings to escalate in international projects, particularly when labor practices and legal frameworks differ significantly between countries.
