A spokesperson for Chinese automaker BYD has objected to reports about poor conditions at a construction site in Brazil where it is building a factory, saying the allegations were aimed at “smearing” China and Chinese brands.

BYD has been building the factory with an annual capacity of producing 150,000 cars initially in Brazil, the Chinese EV giant's largest overseas market, as part of plans to start production there.

"Slavery-like conditions", as defined by Brazilian law, include debt bondage and work that violates human dignity. The MPT added that the situation also constitutes "forced labour", as many workers had their wages withheld and faced excessive costs for terminating their contracts. BYD said affected workers had been moved to hotels.