VW factory in the Uyghur region of Xinjiang

Recently, Volkswagen AG published the results of the long-awaited audit of the VW-SAIC factory in Urumqi, the capital city of the Uyghur region of Xinjiang / East Turkestan. The audit was supposed to be carried out by the consultant firm of the former Human Rights Commissioner of the German Federal Government, Markus Löning (Loening – Human Rights & Responsible Business GmbH), which commissioned a law firm in Shenzhen to take on the task. After months of announcements and advance notices, discussions were held with employees. According to Löning, these talks did not reveal any indications or evidence of forced labor in the factory.

“In a region in which millions of Uyghurs are extensively monitored, indefinitely interned, tortured, and severely mistreated – only because of statements or appearances that do not align with the ideals of the CPC – it is simply not possible to carry out an independent audit,” emphasized Gheyyur Kuerban, Director of the Uyghur World Congress in Berlin. “Everyone knows that one wrong word can have life-threatening consequences – for oneself or for one’s family members.” 

Many international accounting firms such as TÜV Süd, Bureau Veritas, and Worldwide Responsible Accredited Production (WRAP) have withdrawn from the Uyghur region, as they are unable to carry out any independent and reliable audits there. According to Human Rights Watch, several audit firms complained about extreme surveillance, physical and digital movement tracking, and the use of facial recognition.

“It is an absurdity that Volkswagen still has a factory in this extremely repressive environment at all. The Wolfsburg-based company is providing the Chinese regime with a propaganda success, hoping to gain better access to the Chinese market in return. However, the human rights of the Uyghur population of Xinjiang are bound to fall by the wayside. Leading audit companies do not consider the region to be auditable. Talks with undoubtedly hand-picked employees are not sufficient to dispel the suspicion of forced labor in the company’s supply chains,” stated Hanno Schedler, STP expert on genocide prevention and the Responsibility to Protect.

Löning emphasized that the human rights situation in the Uyghur region remains challenging. His mandate is limited to the actual factory, and his firm cannot assess what happens outside of it. Considering the extensive report of the UN High Commissioner for Refugees – according to which the actions of the Chinese government can be seen as crimes against humanity – this is not enough. Every audit report should mention these limitations and take them into consideration.

“The VW-SAIC factory in the Uyghur region cannot be seen as independent from the context of the genocide in the region. Talks with the workers are crucial to investigate the human rights situation. However, these talks cannot provide reliable information if the interviewees fear for their safety and that of their relatives,” Kuerban added. Further, the audit focuses only on the factory in Urumqi. Volkswagen’s supply chains and its joint ventures are not considered. According to reports – from the Sheffield Hallam University, among others – Uyghur forced labor is still an integral part of Volkswagen’s supply chains.

“The audit published by VW aims to divert public attention away from the real problem: Clearly, the serious issue of forced labor in the company’s supply chains, for which there is credible evidence, is still being ignored,” explained Gheyyur Kuerban, Director of the Uyghur World Congress in Berlin.

“The audit raises more questions than it is able to answer. Rather, it seems to confirm the suspicion that the factory might be operated for political rather than economic reasons. Primarily, however, Volkswagen will have to react to the evidence of forced labor in connection with the supply chains in all of China, not only regarding the factory in Urumqi. So far, the company has failed to provide specific answers on how it intends to proactively identify, minimize, and eliminate forced labor risks with regard to its suppliers in China,” criticized Tilman Massa, co-managing director of the German Umbrella Association of Critical Shareholders. “If it is so difficult to carry out a single audit at a joint venture partner – if this can only be done with prior notification, and without considering the aspects of freedom of opinion and trade union freedom – further audits can hardly be seen as an effective measure.”

The results of the audit must not serve as a fig leaf for Volkswagen. The company should publish all the results. Further, VW must also explain how it intends to eliminate Uyghur forced labor in all of its supply chains, including those of its joint ventures. VW investors – especially the state of Lower Saxony – should make this clear to Volkswagen’s Board of Management, and they should demand further measures.