New Research Shows CCP Connections Behind Volkswagen’s Controversial Forced Labor Audit 

New research from the Victims of Communism Memorial Foundation (VOC) analyzing a leaked, full copy of the confidential audit of Volkswagen’s controversial factory in Xinjiang, China, shows that key statements made about the audit were false or misleading. 

According to analysis by Dr. Adrian Zenz, Senior Fellow and Director in China Studies at VOC, the audit commissioned by Volkswagen was conducted by a Chinese law firm with significant ties to the Chinese Communist Party (CCP). The law firm is not accredited to conduct the type of audit Volkswagen commissioned and had no relevant prior experience. 

Since 2013, Volkswagen has operated a factory in the city of Urumqi, the capital of China’s Xinjiang region where mass arbitrary detention and mass forced labor of the Uyghurs by the Chinese Communist Party have been comprehensively documented by VOC. In response to widespread criticism of its operation in the region and following the release of information from VOC that conclusively demonstrated the risk of forced labor in the factory, the German automaker agreed to an independent audit. Volkswagen claimed the third-party investigation found “no indication of any human right violations or wider issues around working conditions” — but refused to release the full details of the audit to the public.  

In light of this obfuscation, VOC obtained exclusive access to the unreleased audit from the advocacy group Campaign for Uyghurs in August of 2024. Dr. Zenz’s analysis of the report, published by the Jamestown Foundation, exposes Volkswagen’s deceptive auditing practices and reviews the authenticity of the leaked audit conducted by the Chinese firm Liangma Law, as well as Liangma’s connections to the CCP. The report continues to dissect the inadequate audit methods used and the professional backgrounds of those involved. 

Dr. Zenz concludes that shortcomings in the audit’s methodology and implementation render it unable to adequately assess forced labor risks, and that as a result, investors and index providers such as MSCI should avoid including Volkswagen’s stock in their portfolios. 

“Liangma Law’s significant ties to the CCP and the fact that interview sessions were livestreamed back to Liangma’s headquarters preclude any Uyghur interviewee from giving an honest assessment of his or her experience working in the factory,” says Dr. Adrian Zenz. “Liangma is not accredited by Social Accountability International (SAI) to conduct certified SA8000 audits, and the audit failed to assess most indicators of forced labor required by this standard.” 

“Dr. Zenz’s groundbreaking research conclusively shows what we have long known: Western companies are at risk when operating in China,” said VOC President and CEO Dr. Eric Patterson. We must do better — and that starts with transparent audits. The promise of profits is not worth complicity in Beijing’s cultural genocide of the Uyghurs.” 

For press inquiries contact Lily McHale at  lily.mchale@victimsofcommunism.org or (202) 629-9500.