Deutsche Welle Chinese Edition recently reported that Germany’s Volkswagen and its Chinese partners just announced the sale of their factory in Urumqi, Xinjiang, as well as test tracks in Turpan, Xinjiang and Shanghai. Volkswagen attributed the move to “economic reasons” under “strategic realignment”. However, Volkswagen’s factories in Xinjiang have previously been accused of forced labor and other human rights violations.
It’s unclear how much the deal is worth. People familiar with the matter said that after the completion of the above-mentioned transaction, Volkswagen will no longer have any business in Xinjiang. In 2023, China remained Volkswagen’s largest single market, but Volkswagen’s sales growth in the Chinese market has been slowing down. Its title of China’s Best-Selling Car Brand has also been taken away by BYD.
In 2013, Volkswagen established a joint venture with the Chinese state-owned Shanghai Automotive Industry Corporation to build an assembly plant in Urumqi to produce cheap vehicles for sale in China’s western region. Around a quarter of its nearly 200 employees are Uyghurs. Human rights activists have for years accused Beijing of cracking down on Uyghurs and other Muslim minorities in Xinjiang.
Source: DW Chinese, November 27, 2024
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