Germany denies VW China’s investment guarantee on human rights issues

Der Spiegel reported Friday that the German Ministry of Economy refused to provide automaker Volkswagen (VOWG_p.DE) with a guarantee to cover new investment in China due to concerns about human rights violations in the Xinjiang Uygur Autonomous Region. did.

The ministry confirmed that it had rejected four applications from companies over human rights issues in the Xinjiang Uygur Autonomous Region, but did not name the company. Der Spiegel said Volkswagen was the company in question, without naming the source.

“The human rights situation in Xinjiang Uygur Autonomous Region has deteriorated in recent years, involving forced labor and mass detention of Uighurs,” the ministry said.

“Therefore, the German government has decided not to guarantee 1) projects in Xinjiang Uygur Autonomous Region, or 2) projects in China that have business relationships with entities doing business in China.”

Through a joint venture with SAIC Motor (600104.SS) in China, Volkswagen has a factory in Urumqi, Xinjiang Uygur Autonomous Region. Western countries and rights groups say Uighurs are facing torture and detention.

China has repeatedly denied Uighur abuse and states that detention camps are vocational training facilities where people can “voluntarily” check in and learn about law, Chinese and vocational skills.

A Volkswagen spokesperson confirmed that the company had filed an investment guarantee application in China and added that it had not yet received a formal decision from the ministry.

A Volkswagen spokesperson said the application was not intended to invest directly in the Group’s Arie plant or anywhere near it, but products manufactured at plants elsewhere in the country could reach the region. He said he could not deny that he had sex.

Germany, struggling to free Russia from its dependence on gas after being involved in Moscow’s invasion of Ukraine, is now reassessing its ties with China and, with more emphasis on human rights, the Robert Habeck economy. The minister said earlier this week.

Volkswagen said it follows the UN Guiding Principles on Business and Human Rights and is an integral part of the company’s code of conduct. Germany denies VW China’s investment guarantee on human rights issues

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