BASF to divest from two China joint ventures over allegations of Xinjiang human rights abuses
- German chemical giant calls reports of visits to Uygur employees ‘serious allegations that indicate activities inconsistent’ with company’s values
- China operations ‘otherwise unchanged’, BASF says, pledging full commitment to its ‘business activities and planned investments in the country’
“Recently published reports related to the joint-venture partner contain serious allegations that indicate activities inconsistent with BASF’s values. Consequently, BASF will accelerate the ongoing process to divest its shares,” read a statement posted on the company’s website on Friday afternoon.
The company said it had conducted its own “regular due diligence measures including internal and external audits” which had not uncovered “any evidence of human rights violations in the two joint ventures”.
Nonetheless, it has taken the decision under intense political scrutiny of its activities in the far-western Chinese region.
The divestment is “subject to negotiations and required approvals of the relevant authorities”, the company said, adding that its China business “remains otherwise unchanged, and the company is fully committed to its business activities and planned investments in the country”.