BASF’s investments in China had come under criticism because of possible human rights violations. The German chemical company is now selling its shares in two joint ventures in the Uighur region of Xinjiang.
The German chemical company BASF is drawing conclusions from allegations against a partner company in China of supporting human rights violations. BASF will sell shares in its two joint ventures Markor Chemical and Markor Meiou Chemical in Korla, in the center of the Xinjiang Uyghur Autonomous Region, the company said. The process was already initiated in the fourth quarter of 2023, but should now be accelerated.
Recently published reports about the joint venture partner contained serious allegations “that indicate activities that are not compatible with BASF’s values,” according to a statement from the group, which has its headquarters in Ludwigshafen. According to its own information, BASF has been operating the two joint ventures with Markor in Xinjiang since 2016 and employs around 120 people there.
Media: Employees directly involved in campaigns
ZDF and Spiegel had previously reported that their partner Markor was significantly more involved in the system of oppression against the Muslim Uyghur minority in northwest China than was previously known. Employees were directly involved in a campaign of control and repression by party cadres in Xinjiang.
At the time, BASF stated that it was taking the information “very seriously” and that the company had previously had no knowledge of these activities. The company now emphasized that, in connection with the most recent reports, there was no evidence that employees of the two joint ventures in Korla were involved in human rights violations. The reports only refer to BASF’s joint venture partner, in which the group is not involved.
Presence in China otherwise remains unchanged
BASF’s presence in the People’s Republic otherwise remains unchanged, and the company is “fully sticking to” its business activities and planned investments in China. BASF is currently building a new Verbund site in the Chinese province of Guangdong for up to ten billion dollars. In Korla, the company produced butanediol, which is used as a raw material for polyesters, polyamides and polyurethanes.
China has been accused of systematically repressing Uyghurs and other Muslim minorities for years. According to human rights organizations, more than a million people are being interned in camps in the Xinjiang region. China rejects the allegations.