The polytetrahydrofuran production unit jointly established by BASF and Xinjiang Markor Chemical Industry officially went into operation in July 2016. (BASF China official website)

German chemical company BASF has announced its withdrawal from joint ventures in East Turkistan, a decision that human rights advocates see as a response to persistent allegations of forced labor involving the Uyghur population.

The move involves the sale of BASF’s shares in two companies based in Korla, a city in East Turkistan (referred to by Chinese authorities as Xinjiang). According to BASF, the buyer is Verde Chemical Singapore Pte. Ltd., a firm controlled by Verde Ventures SGP. Financial terms of the transaction, finalized earlier this week, have not been disclosed.

Although BASF’s internal audits did not find direct evidence of labor rights violations, the company acknowledged that external reports presented “serious allegations” incompatible with its ethical standards. Reports had earlier linked BASF’s local partner, Zhongtai Group, and its subsidiary Zhongtai Chemical, to forced labor practices targeting Uyghurs.

Uyghur rights organizations welcomed BASF’s decision. Rushan Abbas, a leader within the World Uyghur Congress, described the move as an important step toward ethical corporate behavior and urged other multinational companies to follow suit.

The U.S. government has officially recognized the Chinese state’s treatment of Uyghurs in East Turkistan as genocide. Under American law, imports suspected of being linked to Uyghur forced labor are prohibited unless proven otherwise.

Previously, German automaker Volkswagen had also exited its operations in the region amid similar accusations.

(Adapted from reporting by RFA Uyghur)