Volkswagen has sold its plant in Xinjiang, a region in northwestern China beset by accusations of human rights abuses, citing “economic reasons.”

Germany's Volkswagen Group and its Chinese partner have sold a factory in the Xinjiang region of China, where accusations of forced labor dogged the facility for many years.

The automaker has long been criticized by human rights activists for doing business in the territory, where China has repressed Muslim ethnic groups.

German car giant Volkswagen said Wednesday it would sell its operations in China's Xinjiang region, where Beijing has been accused of widespread human rights abuses including forced labour.

VW sells assets to address political risks and cut excess capacity, while extending its partnership with to regain market share in China Volkswagen's (VW) sale of a controversial plant in China will come as a relief to the German carmaker,