The reports of mistreatment of Uyghurs in China have consequences for German companies. According to Minister Habeck, a company based in the province of Xinjiang has been denied investment guarantees – according to “Spiegel” it is VW. Thus, the government would not bear any financial risks.
In view of the human rights violations against the Uyghur minority in China, Federal Economics Minister Robert Habeck wants human rights to be given more weight in future trade policy. “A company that is also active in the province of the Uyghurs wanted to extend investment guarantees. We won’t allow that,” Habeck told the “Welt am Sonntag”. In his words, it is “the first time” that investment guarantees “fail” for human rights reasons.
Of course, requests for guarantees would continue to be decided on a case-by-case basis, Habeck said. “But the guiding principle is: We cannot secure any projects in the Xinjiang region in view of the forced labor and mistreatment of the Uyghurs.”
According to “Spiegel” information, the company concerned is the Volkswagen Group. A ministry spokeswoman quoted the news magazine as saying that “four applications from a company for the extension of investment guarantees” were not granted.
Volkswagen therefore confirmed corresponding applications for investment guarantees. However, the group has not yet received a response from the federal government. “We expect a decision,” said a VW spokesman. “Of course, a rejection is also possible.”
Volkswagen is criticized for its China business mainly because of its activities in Xinjiang. According to “Spiegel” information, VW does not want to invest in the controversial plant there, but in other factories in China. However, the ministry refuses to vouch for the new project. The applications are related to a branch in Xinjiang, at least the connection cannot be ruled out, the ministry said, according to “Spiegel”.
For VW, the rejection has the consequence that the group has to bear the financial risks for its planned commitments in China alone. According to information from VW circles, the government’s decision will not change anything about Volkswagen’s investment plans.
Habeck indicated to “Welt am Sonntag” that he might subject other Chinese officials to sanctions similar to Russian oligarchs if they were demonstrably involved in crimes against Uyghurs. EU sanctions against officials for serious human rights violations in the Xinjiang region have been in place for over a year, he said. “If it is possible to identify other people responsible and their actions can be proven, I think it is worth considering.”
