The automaker has long been criticized by human rights activists for doing business in the territory, where China has repressed Muslim ethnic groups.

German car giant Volkswagen said Wednesday it would sell its operations in China's Xinjiang region, where Beijing has been accused of widespread human rights abuses including forced labor.

VW and its local partner sold a production site in the Xinjiang region that had previously brought increased scrutiny on the automaker over human-rights concerns.

German carmaker Volkswagen is withdrawing from its controversial involvement in a factory in China's Xinjiang province, which has attracted criticism over alleged human-rights abuses of the Uighur minority.

Germany's Volkswagen Group and its Chinese partner have sold a factory in the Xinjiang region of China, where accusations of forced labor dogged the facility for many years.

Volkswagen's (VW) sale of a controversial plant in China will come as a relief to the German carmaker, as it rationalises its flagging operation amid cutthroat competition in the world's largest automotive market,

Volkswagen is making some tough decisions as it attempts to realign its business operations. The automaker is facing strong financial headwinds and looking to cut costs, which could include closing factories in Germany for the first time.

VW sells assets to address political risks and cut excess capacity, while extending its partnership with to regain market share in China Volkswagen's (VW) sale of a controversial plant in China will come as a relief to the German carmaker,