Volkswagen AG will end its activities in Xinjiang, bowing to pressure from investors concerned about possible human-rights abuses in the western Chinese region.
The German carmaker’s local venture with SAIC Motor Corp. will sell a small plant in Urumqi to a unit of state-owned Shanghai Lingang Economic Development, VW said Wednesday. The manufacturer will also extend its partnership with SAIC by a decade to 2040.
VW has fielded uncomfortable questions about its presence in Xinjiang due to allegations by the US and others that China has engaged in forced labor of Uyghurs and other Muslim minorities in the vast region. Beijing has vehemently denied the allegations, saying that its program that aims to improve living standards for ethnic minorities has been misconstrued.
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