Germany Reportedly Refuses To Guarantee China's VW Investments On Human Rights

The interior of a Volkswagen ID electric car is seen during the construction completion ceremony of the SAIC Volkswagen MEB electric vehicle factory in Shanghai, China/Photo: Antara

JAKARTA - Germany's Economy Ministry has refused to give Volkswagen guarantees to cover new investments in China because of concerns over human rights violations in the Xinjiang region, Der Spiegel reported. company on human rights issues in Xinjiang but declined to name the company. Der Spiegel reported, without citing a source, that Volkswagen was the company in question. "The human rights situation in Xinjiang has worsened in recent years and involves forced labor and detention. mass Uyghur people," the ministry said. "Therefore, the German government decided not to provide guarantees for projects in China that 1) are in Xinjiang or 2) have business ties to entities operating there." Through joint ventures with SAIC Motor China, Volkswagen have factories in Uru mqi, which is located in the Xinjiang region, where western countries and rights organizations say ethnic Uyghurs face torture and detention. China has repeatedly denied ill-treatment of Uyghurs, describing the alleged detention camps as vocational training facilities where people can " voluntarily" check themselves to learn about law, Chinese, and vocational skills. A Volkswagen spokesman confirmed that the company had submitted an application for investment guarantees in China, adding that it had not yet received an official decision from the ministry. A Volkswagen spokesman said the application it is not for direct investment in the Xinjiang group's factories or anywhere nearby, but it cannot be ruled out that products made at factories elsewhere in the country could end up in the region. Germany, which is trying hard to free itself from dependence on gas Russia after h was trapped by Moscow's invasion of Ukraine, is now reassessing its relationship with China and will give greater weight to human rights, Economy Secretary Robert Habeck said earlier this week. Volkswagen said it followed the United Nations guiding principles on business and human rights and that was an integral part of the company's code of ethics.