Volkswagen AG has decided to withdraw from Xinjiang, a region that has been under scrutiny for alleged human rights violations.

The German automaker will sell a small manufacturing facility in Urumqi to a subsidiary of state-owned Shanghai Lingang Economic Development.

This decision comes in response to increasing pressure from investors who are concerned about the ethical implications of operating in the area.

As part of this sale, Volkswagen will extend its partnership with SAIC Motor Corp. for another ten years, now lasting until 2040.

This strategic move demonstrates the company's commitment to addressing investor concerns while maintaining its presence in the Chinese automotive market.