German automobile giant Volkswagen announced on Wednesday the sale of its operations located in the Xinjiang region of China, where Beijing is accused of massive human rights violations, including forced labor.
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The company will sell its factory in Xinjiang’s capital, Urumqi, as well as a test track in Turpan, to a Chinese company, a spokesperson said in a statement.
The company cites “economic reasons” and a “strategic realignment” to justify its decision.
For several years, human rights defenders have accused Beijing of carrying out a repression against Uyghurs and other Muslim minorities in Xinjiang, including forced labor and detention in camps.
The region located in northwest China is home to several suppliers to multinational companies, including major European and American brands.
Volkswagen has long been the center of attention due to its factory in Urumqi, opened in 2013, in which the company has a stake through its local partner SAIC.
Earlier this year, German financial daily Handelsblatt claimed that the construction of VW’s test track in Turpan in 2019 may have involved forced labor.
Volkswagen responded that it had found no evidence of human rights violations related to the project, but promised to investigate the matter.
In its press release, the German manufacturer states that all of its operations in the region will be sold to the Chinese company Shanghai Motor Vehicle Inspection Center (SMVIC).
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