Chinese workers at a construction site in Brazil for a factory owned by China's electric vehicle producer BYD are victims of human trafficking, Brazilian labor authorities said on Thursday in a growing controversy in BYD's biggest overseas market.

Brazilian labor authorities have accused BYD and Jinjiang Group of human trafficking at a construction site in Brazil. The situation underscores China's growing influence and the challenges foreign companies face in balancing local job needs and global expansion.

Authorities in Brazil said Friday they are probing Chinese auto giant BYD and one of its contractors for suspected "trafficking" of Chinese workers building a factory in the South American country. Federal prosecutors in Brazil are weighing possible criminal action after labor inspectors