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 labor.

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

German carmaker Volkswagen is withdrawing from its controversial involvement in a factory in China's Xinjiang province, which has attracted criticism over alleged human-rights abuses of the Uighur minority.

Volkswagen and Shanghai's SAIC Motor have agreed to sell a factory in China's far western Xinjiang region that drew criticism due to accusations by western governments of human rights violations. The companies also said Wednesday that they were extending their 40-year-old automaking joint venture until 2040,

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.

Volkswagen's (VW) sale of a controversial plant in China will come as a relief to the German carmaker, as it rationalises its flagging operation amid cutthroat competition in the world's largest automotive market,

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.

Over the next three years alone, the Group and its brands will bring 40 new models to the Chinese market, half of which will be electrified.