Construction of a factory for Chinese electric vehicle manufacturer BYD was halted by Brazilian authorities in December 2024, after conditions compared to "slavery" were found for Chinese workers. Conditions amounted to forced labour, according to the Public Prosecutor's Office. The site is reportedly shut until compliance is ensured and while investigations are ongoing.

More than 160 workers were "rescued" after they were found to be living in inhumane conditions while 60% of their salaries and passports were held by contractor Jinjiang Construction Brazil. Workers did not have proper bedding, and shared cramped bathrooms and sanitation facilities. On the worksite, 600 employees shared only eight poorly maintained toilets. Investigators also found numerous safety violations, including long working hours for 25 consecutive days.

BYD's Brazilian subsidiary said it had cut the contract with the construction company and that affected workers had been moved to hotels. It said it had asked for the construction company to make improvements to the working and living conditions for subcontracted employees. A spokesperson for BYD said the allegations were aimed at "smearing" China and Chinese brands.

Labour authorities organised an online hearing for BYD and Jinjiang to "present the necessary provisions guaranteeing minimal accommodation conditions" and rectify identified issues. Jinjiang Construction has denied the allegations by Brazilian authorities.

A November 2024 investigation by Pública revealed similar labor rights violations affecting workers employed by two other contractors at the site: AE Corp and Open Steel. In January 2025, the Business & Human Rights Resource Centre invited the two companies to respond to these allegations, they did not.

Also in January, it subsequently emerged that the company is reportedly surveilling Brazilian employees in the wake of the investigation, including through the installation of cameras, posters banning photos being taken and computer software that can identify workers’ machines which share information externally. Reporting in Agência Pública states BYD said the measures were fully within the law and were related to the protection of business secrets.