VW CEO Diess defends operations in China's Xinjiang

BERLIN -- Volkswagen Group plans to continue operations at its plant in China's Xinjiang region despite reports of human rights violations there, CEO Herbert Diess said.

VW has a joint venture plant with SAIC in Urumqi, the capital of the region where Western nations and rights groups say ethnic Uyghurs face torture and detention.

"I believe that the presence of SAIC Volkswagen leads to the situation improving for people," Diess in comments published by the Handelsblatt newspaper on Monday.

"We travel there, and like everywhere in the world we ensure our labor standards are implemented, and that cultural and religious differences are respected," Diess said.

He said any evidence of wrongdoing at the Xinjiang plant would be met with a "massive" response, according to the report.

Germany's Economy Ministry has refused to provide VW with guarantees to cover new investments in China because of the alleged human rights violations, according to a Friday report in Der Spiegel magazine.

Der Spiegel quoted a ministry spokesperson as saying that it had "for human rights reasons" rejected four applications from a company.

The magazine added, without giving sources, that VW was the company in question.

A VW spokesperson confirmed that the company has submitted applications for investment guarantees, adding it had not yet received an official decision from the ministry.

China has repeatedly denied any mistreatment of Uyghurs, describing alleged detention camps as voluntary vocational training facilities.

VW has also faced pressure to address human rights concerns in Brazil, where public prosecutors have launched an investigation into alleged human rights violations linked to a cattle farm in the country.