BUSINESS

Brazil Court Temporarily Removes BYD from Forced Labor Blacklist

Published: Apr. 14, 2026 10:45 p.m. GMT+8

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A BYD sign is displayed near the under-construction factory in Camacari, Bahia, Brazil, on March 6, 2025. Photo: VCG

A Brazilian court has temporarily removed Chinese electric vehicle maker BYD Co. Ltd. from the government’s forced labor blacklist, ruling that the construction workers in question were not directly employed by the automaker.

This rapid reversal, which occurred just days after BYD’s inclusion on the biannual registry, highlights the complex and stringent labor regulations that foreign companies must navigate as they expand manufacturing in Latin America’s largest automobile market.

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Brazilian court removed BYD from forced labor blacklist days after April inclusion, ruling workers employed by subcontractor.
Dec 2024 incident: 163 workers in poor conditions; BYD terminated JinJiang contract, settled Dec 2025 with compensation and 40M reais ($8M) damages.
BYD's 3B reais Bahia investment; 150k-unit plant operational July 2025; 112,800 vehicles sold in 2025 (+47%).

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Who’s Who

BYD Co. Ltd.: A Brazilian court removed BYD Co. Ltd. from the forced labor blacklist days after its April addition, as workers were employed by subcontractor JinJiang Construction for factory construction. BYD terminated the contract, settled in Dec 2025 with worker compensation and 40M reais ($8M) damages. BYD invested 3B reais in Bahia plants; sold 112,800 EVs in Brazil in 2025 (+47% YoY).

JinJiang Construction: JinJiang Construction was BYD's outsourced contractor for constructing and installing equipment at its Brazilian factory. In December 2024, 163 workers hired by JinJiang were found living in poor conditions, violating labor standards. BYD terminated the partnership immediately and later settled with contractors, compensating workers and paying $8 million in damages.

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