This is the first in a three-part series looking at efforts by Chinese companies to step out of their comfort zone and expand abroad amid mounting domestic competition, and how this has resulted in learning curves, labour scandals and more diverse supply chains.
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Long working hours, beds without mattresses, a communal lavatory shared by dozens of people – these are often axiomatic elements in the life of a Chinese construction worker.
But they are considered unacceptable “slavery-like conditions” in Brazil, a country that is incomparable with China in terms of economic size but which outperforms the latter in protecting employees.
BYD, China’s electric vehicle giant that is vigorously expanding its global footprint, along with its partner operating in Brazil, have been thrust under the spotlight recently for allegedly violating workers’ rights at its factory being built in Brazil’s northeastern state of Bahia.
The country’s labour authorities reported on December 23 that they saved 163 Chinese workers who were irregularly recruited by BYD’s long-time partner in China, Jinjiang Group, and sent to Brazil.
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An investigation allegedly showed that those employees worked excessive overtime – some without a day off for seven consecutive days – under harsh conditions, and that their passports were found to be withheld by their boss at Jinjiang.
While both BYD and Jinjiang denied most of the accusations via social media statements, the scandal highlights a legal and cultural shock that Chinese companies are experiencing during their expansion overseas amid domestic overcapacity issues, according to analysts.