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 Co. has severed ties with a construction firm after Brazilian authorities halted construction of a new electric-vehicle plant where workers were found working and living in “slavery”-like conditions.

"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.