Main points
- In Brazil, the Chinese company BYD was accused of slave labor and added to the “list of shame.”
- Workers from China were forced to surrender their passports, live in poor conditions, and send part of their salaries back to China.
Chinese automaker added to “list of shame” due to slave labor conditions / Collage by Channel 24, photo Getty Images, REUTERS/Akhtar Soomro
A high-profile scandal has erupted in Brazil surrounding Chinese electric car giant BYD. The company has been officially added to a so-called “shame list” of employers suspected of creating conditions akin to slave labor.
What is known about the BYD slavery scandal?
In 2024, allegations emerged that Chinese workers brought to Brazil to build a factory may have been victims of human trafficking and harsh labor practices, Reuters writes.
This list, maintained by the Brazilian Ministry of Labor, is not just a formality. Being on it seriously damages the company's reputation, especially considering that Brazil is one of BYD's key markets after China.
In addition, this limits access to certain loans from local banks. At the same time, the plant itself continues to operate – the sanctions do not stop production:
- The Chinese company has not publicly commented on the situation.
- The contractor Jinjiang Group, which hired the workers, denies all allegations.
- BYD itself previously stated that it knew nothing about possible violations until the media wrote about it.
However, Brazilian officials are taking a tough stance: they say that responsibility still lies with BYD, because it is the company that should control its contractors.
“Slave” working conditions at BYD: what is it about?
According to journalists, Chinese workers were forced to surrender their passports to their employers. A significant portion of their salaries were immediately transferred to China, and they were also required to pay a deposit – almost $900 – which could only be returned after six months of work.
During the raid by labor inspectors, it was also discovered that the workers were living in apartments with poor conditions:
- People were housed in overcrowded houses: for example, 31 workers lived in one apartment with a single bathroom:
- Some didn't even have mattresses, and food was on the floor next to personal belongings. Inspectors bluntly called the conditions “degrading.”
The scandal quickly spread beyond Brazil and sparked outrage even in China, delaying construction of the plant by several months.
But BYD appears to have put the scandal behind it, with President Luiz Inacio Lula da Silva attending the plant's inauguration in October, a demonstration of strengthening ties between Brazil and China. Since then, the plant has produced more than 25,000 vehicles,
– the publication writes.
By the way, companies can avoid the “shame list” if they come to an agreement with the government – change their policies and compensate employees for losses. BYD made an agreement with labor prosecutors, but not with labor inspectors – which seems to be the reason for being on the list.
Once entered in this register, a company usually remains there for at least two years – unless a court decides otherwise.
How did BYD become the new “king of electric cars”?
The Chinese auto giant has overtaken Tesla as the world's largest seller of electric vehicles, according to data for 2025, CNN writes.
BYD announced sales of 2.26 million electric vehicles, up nearly 28% from 2024. Meanwhile, Tesla reported a second consecutive year of sales declines, with deliveries falling 8.6% to just 1.6 million, the biggest annual drop in the company's history.
BYD was able to overtake Tesla even though its electric vehicles are not available for purchase in America, while China is Tesla's second-largest market. The company achieved its results by battling fierce competition and relentless price wars in its domestic market.
Intense pressure in China has prompted the company to further expand overseas, although its low-price strategy has attracted attention and led to new tariffs in some markets.
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