VW announced the sale of its operations in Xinjiang in northwestern China, where the Beijing government is accused of massive human rights violations, including forced labor.
The factory located in the capital of Xinjiang, Urumqi, which VW operates in partnership with SAIC, as well as a test track in Turpan, will be sold to a Chinese state-owned enterprise, according to a report from “Bloomberg” citing a statement from VW.
The company cited “economic reasons” and a “strategic realignment” to justify its recently announced decision.
Volkswagen has long been in the spotlight due to its Urumqi factory, which opened in 2013, in which the company has a stake through its local partner SAIC.
It is worth noting that for several years, the U.S. and other Western governments, as well as human rights advocacy organizations, have accused Beijing of conducting a repressive campaign against Uighurs and other Muslim ethnic minorities in Xinjiang, including forced labor and detention in indoctrination camps.
Beijing has vehemently denied the accusations, stating that its program aimed at improving the living standards of ethnic minorities has been misinterpreted.
The northwestern region of China hosts a number of suppliers for multinational companies, including major European and North American brands.
