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.

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.

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.