German automaker Volkswagen (VW) has announced its decision to close its factory and operations in Urumqi, the capital of China’s northwestern Xinjiang region, and a test track in Turpan amidst growing human rights concerns. This move, disclosed in late November 2024, marks a significant decision for the company, given that China remains Volkswagen’s largest market.
While VW has officially cited “economic reasons” for this decision, the backdrop of ongoing human rights abuses in Xinjiang has undoubtedly played a role. Rights groups have documented widespread abuses in the region, including reeducation camps and forced labor targeting Uyghurs and other minority groups—allegations that Beijing denies.
For years, Volkswagen’s presence in Xinjiang has been a contentious issue, drawing criticism from investors and activists concerned about ethical business practices.
