Germany Denies Investment Guarantees For VW China

Germany's Economy Ministry has refused to provide carmaker Volkswagen with guarantees to cover new investments in China because of concerns over human rights violations in the Xinjiang region, Der Spiegel reported.

Photo Insert: Germany's Federal Ministry for Economic Affairs and Climate Action

The ministry confirmed it had turned down four applications from a company over human rights concerns in Xinjiang but declined to name the company. Der Spiegel said, without naming sources, that Volkswagen was the company in question.

"The human rights situation in Xinjiang has become worse in recent years and involves forced labor and mass internment of Uyghurs," the ministry said. "The German government has therefore decided not to give guarantees for projects in China that are 1) in Xinjiang or 2) have business ties to entities operating there."

Via a joint venture with China's SAIC Motor, Volkswagen has a plant in Urumqi, located in the Xinjiang region, where Western countries and rights organizations say ethnic Uyghurs face torture and detention.

China has repeatedly denied any mistreatment of Uyghurs, describing alleged detention camps as vocational training facilities where people can "voluntarily" check themselves in to learn about Chinese law, language, and vocational skills.

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