German chemical giant BASF said on Tuesday it has withdrawn from two joint ventures in China's Xinjiang region after allegedly involved in abuse of rights against local Unagau minorities.
BASF said in a statement that it has completed the sale of its shares in Markor Chemical Manufacturing and Markor Meiou Chemical of Singapore group Verde Chemical.
The German Group did not provide financial details about the transaction, which was completed on Monday “after approval by relevant authorities.”
BASF has said it will accelerate its withdrawal from a joint venture that produces industrial chemical butanediol in February 2024.
BASF has announced plans to sell its shares in 2023 to deal with business and environmental issues.
German public broadcaster ZDF and news magazine Der Spiegel reported that staff at BASF partner Markor were involved in rights violations against most Muslim Uyghur minority members.
Employees allegedly monitored the Uyghur family and submitted reports to Chinese authorities.
BASF said there was no indication at the time that the joint venture employees were involved in rights violations, only employees of its local partners.
Rights groups have long accused Beijing of widespread suppression of ethnic minorities in Xinjiang, including through forced labor and detention camps.
Beijing denies allegations of abuse and insists on its actions in Xinjiang help fight extremism and enhance development.
Despite the controversy surrounding Xinjiang plants, BASF has been intensifying its presence in China, and production costs in Europe are high.
The German Group is building a new 10 billion euro (USD 11.5 billion) chemical complex in southern Guangdong.
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