Volkswagen, the German automotive manufacturer, has confirmed its ongoing discussions with Chinese partner SAIC concerning the future of their collaborative venture based in Xinjiang. This region is home to numerous Uighurs and allegations of human rights abuses in the factory have emerged, as reported by the German newspaper, Handelsblatt.
For several years, Volkswagen has been under scrutiny due to allegations that Uighurs, a Muslim minority group in China, might have been exploited as forced labor in its subsidiary locations. In partnership with SAIC, a Chinese state-owned enterprise, Volkswagen operates a car manufacturing facility and a testing track in Xinjiang province.
Earlier, BASF, a German chemical company, announced its withdrawal from the province, following reports of potential human rights infringements against the Uighurs.
A spokesperson for Volkswagen disclosed on Wednesday that they are “intensively investigating various scenarios”, but did not confirm if the company is contemplating exiting Xinjiang. The factory in Urumqi has been operational since 2013, and the contract with SAIC is valid until 2029.
During a recent inspection of the factory conducted this summer by Volkswagen, no evidence supporting the allegations of forced labor was found. The workforce at the facility has seen a substantial reduction in recent years, dropping from 600 to fewer than 200 employees.
