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

Earlier this year, the U.S. blocked imports of several Porsche, Bentley, and Audi vehicles amid concerns that they contained a Chinese-made part that violated U.S. forced labor laws.

VW and its local partner sold a production site in the Xinjiang region that had previously brought increased scrutiny on the automaker over human-rights concerns.