By Lisandra Paraguassu
BRASILIA (Reuters) -Brazil has stopped issuing short-term work visas for BYD (SZ:), the Ministry of Overseas Affairs mentioned on Friday, within the wake of accusations that some employees at a web site owned by the Chinese language electrical car producer had been victims of human trafficking.
The announcement got here days after labor authorities mentioned they discovered 163 Chinese language employees who had been delivered to Brazil irregularly in “slavery-like” circumstances on the BYD manufacturing unit building web site within the northeastern state of Bahia. The employees have been employed by contractor Jinjiang Group, which has denied any wrongdoing.
Later, the authorities additionally mentioned the employees have been victims of human trafficking. In response to the international ministry, the employees entered Brazil on short-term work visas.
The manufacturing unit has develop into a logo of China’s rising affect within the South American nation and an instance of a better relationship between each international locations. BYD has invested $620 million to arrange the Bahia manufacturing unit complicated alone.
Brazil is the largest abroad marketplace for BYD, which didn’t instantly reply to a request for touch upon the ministry’s choice.
The Chinese language EV maker has mentioned it plans to start out manufacturing in Brazil early subsequent 12 months with an preliminary annual output of 150,000 vehicles.
Brazil’s Ministry of Justice mentioned in a separate assertion on Friday that if irregularities discovered by prosecutors within the BYD manufacturing unit are confirmed, it will revoke the residence permits it had issued to the Chinese language employees.
The Ministry of Justice had already despatched a request to the Ministry of Overseas Affairs to droop BYD short-term visa issuance on Dec. 20, three days earlier than the labor authorities’ findings have been made public, in accordance with a supply with data of the communication.
The order was then forwarded to Brazil’s embassy in Beijing, the supply added.
In a social media put up on Thursday, which was reposted by a BYD spokesperson, Jinjiang Group rejected the Brazilian authorities’ accusations concerning the work circumstances on the Bahia web site.
The contractor mentioned the portrayal of the employees as “enslaved” was inaccurate and that there had been translation misunderstandings.
BYD and Jinjiang Group have agreed to help and home the 163 employees in accommodations till a deal to finish their contracts is reached, the Brazilian Labor Prosecutor’s Workplace mentioned in an announcement on Thursday, after assembly representatives from each companies.
Practically one in 5 vehicles BYD bought exterior of China within the first 11 months of 2024 was in Brazil.