Brazil has stopped issuing temporary work visas for BYD , the Ministry of Foreign Affairs said on Friday, in the wake of accusations that some workers at a site owned by the Chinese electric vehicle producer had been victims of human trafficking.

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.