Volkswagen has come under widespread criticism for continuing to operate a factory in the heart of Xinjiang in an apparent attempt to demonstrate its loyalty to the Chinese government so that it is not shut out of business opportunities in the country, Der Spiegel has reported.
Volkswagen has operated the factory in Ürümqi since 2013, in partnership with the Chinese state-owned company SAIC, despite reports of rampant human rights violations in the region.
When asked if "possible internment camps" for oppressed Muslim Uyghurs were located within 25 kilometers of the factory, which satellite images seem to show, Volkswagen said: "We don't know," adding that "to the best of our knowledge," there is no such camp in the immediate vicinity of the plant.
Volkswagen, which sells some 40% of its cars in China, appears to remain mainly focused on the huge growth possibilities represented by the country. Ferdinand Dudenhöffer, director of Center Automotive Research, an industry research facility with close ties to VW and to Chinese carmakers, told Der Spiegel that Beijing would view the closure of the VW factory in Ürümqi as a hostile act.
World Uyghur Congress President Dolkun Isa bemoaned that "a company that is partially state owned and which employed forced laborers in World War II is again making itself culpable. The company makes itself liable when it closes its eyes to the obvious."
The fact that VW seems to be lacking in sensitivity and transparency in China isn't just a concern for politicians and human rights activists, as fund managers and shareholders have also been critical.
So has the German government, with the Economy Ministry having denied the company guarantees for new investments in China due to human rights reasons.
In addition, the Act on Corporate Due Diligence in Supply Chains will go into effect next year, which makes companies responsible for human rights violations, even if they occur at factories belonging to suppliers or subcontractors, which will make it almost impossible for German companies to do business in Xinjiang.
VW operates more than 40 production facilities with partners in China, with some of them able to make 600,000 cars per year. Ürümqi has a limited annual production capacity of just 50,000 vehicles, which represents a tiny share of the 3 million to 4 million vehicles VW produces each year in China. This appears to illustrate that VW keeps it open only to prove its loyalty to the Chinese government, according to Der Spiegel.
VW appears intent on keeping the goodwill of Beijing no matter what. Even an urgent letter from Isa a few years ago that the treatment of Uyghurs in China had "worsened dramatically," including "arbitrary mass arrests," elicited only a mild response.
Isa said VW's declaration that it stands for honorable principles does not extend beyond a statement on paper.
One such letter full of platitudes that VW “stands by our responsibilities in all business areas over which we have direct control" only raises the question of what can the company really control and what does it actually want to control.
Brian Freeman ✉
Brian Freeman, a Newsmax writer based in Israel, has more than three decades writing and editing about culture and politics for newspapers, online and television.
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