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While the company said the decision was made for economic reasons, the automaker’s presence in Xinjiang has become a source of ethical scrutiny over the years. Volkswagen said on Wednesday it would sell its operations in China’s far-western Xinjiang region, citing its need to maintain business competitiveness and emphasizing that the company is primarily geared toward manufacturing traditional gas-powered cars, a focus increasingly out of step with China’s rapid adoption of electric vehicles (EVs). Volkswagen had a joint venture assembly plant in Urumqi, the capital of Xinjiang—where the Chinese communist...
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