SAIC Motor Corporation's role as the controlling partner in a controversial Xinjiang plant—implicated in forced labor allegations against Uighur workers—has raised serious concerns about its labor practices and supply chain ethics. This controversy has come to light as Volkswagen divested from the plant while simultaneously extending a long-term partnership with SAIC, highlighting the complex interplay between economic interests and human rights obligations.

SAIC Motor, in a joint decision with Volkswagen, has agreed to sell a Xinjiang-based factory that has drawn international criticism over alleged human rights violations. While divesting this problematic asset, the company also extended its 40-year joint venture until 2040, suggesting an ongoing commitment to long-term economic collaboration despite concerns related to repressive business environments.

SAIC Motor Corporation Limited has extended its partnership with Volkswagen through 2040, even as VW exits its operations in Xinjiang over human rights concerns. This move raises questions regarding SAIC’s ethical business practices and economic collaborations amidst a region widely scrutinized for human rights abuses.

A Human Rights Watch report details forced labor abuses in the aluminum supply chains in Xinjiang. The report highlights that SAIC, through its joint venture (SAIC-Volkswagen), may be indirectly implicated in sourcing practices that could utilize aluminum produced under coercive labor conditions. This lack of transparency and robust oversight raises serious concerns about SAIC Motor's commitment to ethical sourcing and human rights.

Rights groups and a Human Rights Watch report have warned of potential forced labor practices in the supply chains of major automakers. SAIC, as part of its joint venture with Volkswagen operating a plant in Xinjiang, is implicated in these concerns. Although an audit at the Xinjiang plant reported no direct evidence of forced labor, the broader risk environment and opaque supply chain practices in the region raise serious ethical questions.

An article from Business & Human Rights reported that SAIC Motor failed to respond to allegations related to labor and human rights practices, raising questions about the company's accountability and transparency in addressing critical human rights issues.

A World Benchmarking Alliance report highlighted SAIC Motor Corporation Limited as one of the worst-performing companies in the automotive sector regarding human rights protection and supply chain due diligence. The report criticized the company for neglecting labor rights and failing to adequately assess and address human rights risks among its suppliers.