Brazil has stopped issuing temporary work visas to Chinese electric carmaker BYD after suspicions of human trafficking at its factory site in Bahia.
Authorities found 163 Chinese workers allegedly brought to Brazil in irregular conditions, living in conditions of slavery.
The workers were hired by Jinjiang Group, a BYD contractor, which has denied any wrongdoing and said there was only a misunderstanding due to a language difference.
The $620 million plant is set to produce 150,000 cars annually starting next year, making Brazil one of BYD’s key markets.
Brazil is BYD’s largest overseas market, making the country important to BYD, a sign of China’s growing influence in South America.
Brazil’s justice ministry is also considering whether to revoke the workers’ residence permits if the allegations are confirmed.
BYD and Jinjiang have agreed to house the workers in hotels until a deal to end their contract is reached.
For now, the workers await their fate, as both countries grapple with the tension.
The steps taken by the Brazilian government reflect increasing scrutiny of labor practices in the country.
