China EV giant BYD hits the skids in Brazil as ‘slavery-like’ claims run over labour force

This is the first in a three-part series looking at efforts by Chinese companies to step out of their comfort zone and expand abroad amid mounting domestic competition, and how this has resulted in learning curves, labour scandals and more diverse supply chains.

Long working hours, beds without mattresses, a communal lavatory shared by dozens of people – these are often axiomatic elements in the life of a Chinese construction worker.

The country’s labour authorities reported on December 23 that they saved 163 Chinese workers who were irregularly recruited by BYD’s long-time partner in China, Jinjiang Group, and sent to Brazil.

An investigation allegedly showed that those employees worked excessive overtime – some without a day off for seven consecutive days – under harsh conditions, and that their passports were found to be withheld by their boss at Jinjiang.

While both BYD and Jinjiang denied most of the accusations via social media statements, the scandal highlights a legal and cultural shock that Chinese companies are experiencing during their expansion overseas amid domestic overcapacity issues, according to analysts.