Brazil is suing Chinese automaker BYD, over claims that the company subjected workers to slave-like conditions and engaged in human trafficking.

The Associated Press reports that Brazilian labor prosecutors filed the lawsuit against BYD and two of the automaker's contractors on May 27, seeking 257 million Brazilian reais ($50 million) in damages. The lawsuit alleges that 220 Chinese workers rescued in December 2024 from the construction site of a BYD factory in Brazil were brought into the country under false pretenses, and were forced into "extremely degrading" working conditions.

According to prosecutors, workers across five settlements managed by BYD and two contractors reportedly slept on beds without mattresses, had limited access to bathrooms, and worked "exhausting hours" with no weekly rest. Federal agents also claimed that workers had up to 70% of their salaries withheld, were made to pay their employers a deposit, and had their passports withheld. If a worker terminated their contract early, they allegedly would have lost their deposit and be forced to refund the value of their airline ticket into the country. 

In a statement to the AP, BYD said that it has been cooperating with investigators and that it will speak further on the case as it develops. In December, a spokesperson for BYD claimed that the allegations amounted to a smear campaign against Chinese brands.