BASF to Withdraw from Xinjiang Joint Ventures Amid Allegations of Human Rights Abuses

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ICARO Media Group
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09/02/2024 21h35

In response to mounting allegations of human rights abuses involving its partner company in Xinjiang, BASF, the German chemicals producer, has announced its decision to withdraw from its two joint ventures in the region. The move comes after recent media reports raised concerns about activities inconsistent with BASF's values.

While the company stated that regular due diligence measures, including internal and external audits, did not uncover any evidence of human rights violations in the joint ventures, it acknowledged that the recent reports indicated otherwise. These reports allegedly highlighted the involvement of employees from BASF's Chinese partner company, Xinjiang Markor Chemical Industry (also known as Markor Chemical), in accompanying Chinese state officials for home visits to Uyghur households. Human rights groups have claimed that such visits are part of a government initiative used for surveillance and indoctrination purposes.

This decision by BASF follows a letter signed by politicians from around the world urging the company to withdraw from Xinjiang. The region has been marred by widespread reports of state-sponsored human rights abuses. The letter, coordinated by the Inter-Parliamentary Alliance on China, called for an end to BASF's involvement in Xinjiang, emphasizing the need to address the alarming situation in the region.

BASF's CEO, Martin Brudermüller, recently met with a group of legislators, including German MEP Reinhard Bütikofer and British MP Iain Duncan Smith. During the meeting, Brudermüller confirmed that several audits conducted since 2019, both internally and externally, did not reveal any wrongdoing or compromises to the company's standards. However, the allegations pertaining to BASF's partner company in Xinjiang constituted a "red line" that had been crossed.

Although a specific timeline for the withdrawal was not provided, Brudermüller expressed hopes that the process would be expedited within the next few months. BASF's decision to disengage from Xinjiang has been hailed as groundbreaking and historically significant by experts.

Bütikofer applauded the steps taken by BASF, stating that by deciding to withdraw, the company has removed excuses that other companies may have used to justify their continued involvement. The move from BASF highlights the growing concerns surrounding the treatment of Uyghurs and other minorities in Xinjiang.

BASF currently operates only these two joint ventures in Xinjiang, but it has facilities in other parts of China. The company will also be divesting from the joint ventures due to the market environment and product carbon footprints in Xinjiang.

BASF has been approached for further comments regarding its decision to withdraw from Xinjiang.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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