German automaker Volkswagen is conducting talks with its joint venture partner in China over its presence in Xinjiang. The move comes after a local newspaper reported that there was evidence of the carmaker’s involvement in forced labour in the region, adding pressure on the automaker to rethink its ties with China. In the Xinjiang region especially, rights groups have documented abuses including forced labour in detention camps, however, Beijing has denied any such abuses.
The report in German business newspaper Handelsblatt said that independent researcher Adrian Zenz had found evidence of the use of forced labour in the construction of a test track in Turpan, Xinjiang, Reuters reported. The track is operated by a subsidiary of the joint venture of SAIC and Volkswagen. “Volkswagen is currently in talks with the non-controlled joint venture SAIC-Volkswagen about the future direction of business activities in Xinjiang province. Different scenarios are being considered intensively,” a spokesperson told Reuters.
As per Zenz’s email to Reuters, he said he had found photos and statements online, including on the website of an engineering company hired by Volkswagen and SAIC in Xinjiang, that indicated that Ugyhurs were employed to construct the test track under poverty alleviation programmes. He added that UN experts have said this often involve forced labour. He went on to say, “Volkswagen has to publicly announce that they’re going to get out as soon as they can.” He believes the company’s move to review options for the site was inadequate in light of the most recent revelations.
Volkswagen, in its defense, said that it was not previously aware of any indications of human rights abuses at the test track. It has been built in conjunction with the carmakers’ jointly owned site in Urumqi. It added that since the two sites were owned by different operating companies, it was not possible audit the test site together.
Stephan Weil, the premier of the German state of Lower Saxony – Volkswagen’s second-biggest shareholder – expressed concerns over the reports, adding his government supported reviewing different scenarios for the business.