London CNN —Volkswagen has sold its plant in Xinjiang — a Chinese region beset by accusations of human rights abuses — citing “economic reasons.”“There is no business case for (the plant),” said a spokesperson, noting that it produced combustion engine vehicles until 2019 and, since then, has effectively operated as a distribution center for models produced in other factories. The Volkswagen spokesperson told CNN that SAIC-Volkswagen sold the plant, located in Xinjiang’s capital Urumqi, to SMVIC, a subsidiary of Shanghai Lingang Economic Development Group, but declined to disclose the value of the sale. The sale comes after governments and human rights groups have, for years, accused China of using forced labor and committing other abuses, such as mass detentions, in Xinjiang against the Uyghur Muslim minority group. Volkswagen has faced criticism from rights activists for owning a plant in the region, but it has said there are no signs that forced labor has taken place in the facility. When asked to comment on the FT article, a spokesperson for Volkswagen told CNN that “Volkswagen always adheres to the legal requirements in its communications.

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