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.

Officials said staff were working excessively long hours while being kept in ‘degrading conditions’ in their accommodation.

BYD and contractor Jinjiang Group have agreed to assist and house the 163 workers in hotels until a deal to end their contracts is reached, Brazil's Labor Prosecutor's Office said in a statement issued after meeting representatives from both firms.