Volkswagen Accelerates Exit From China, Announces Sale of Xinjiang Factory

Despite the intense public backlash, the Chinese government did not allow Volkswagen to leave Xinjiang easily. Dilxat Raxit, spokesperson for the Germany-based World Uyghur Congress, revealed that Beijing explicitly demanded Volkswagen continue operations in Xinjiang, even at a loss. The reasoning was simple: as long as multinational companies remained in Xinjiang, the Chinese government could argue, “If there were human rights issues, multinational companies would have already pulled out.” In this way, China sought to weaken the international moral consensus on human rights.
So, why is China now allowing Volkswagen to withdraw from Xinjiang? This is a calculated exchange of interests. China still needs Volkswagen. Through this withdrawal, China preserves the legitimacy of its joint venture with Volkswagen in international markets while securing an extension of their partnership with SAIC until 2040 to ensure Chinese-made cars continue to flow into global markets through Europe.
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