BASF has officially sold its shares in two Chinese joint ventures, Markor Chemical Manufacturing and Markor Meiou Chemical, to Singaporean Verde Chemical. The company confirmed the completion of the transaction before the weekend after receiving approval from the authorities. The financial details were not disclosed. The deal comes between the ongoing controversies relating to human rights violations in Xinjiang, China. 

BASF made its first announcement of divestment from the joint ventures in 2023, stating commercial and environmental concerns. In February 2024, BASF announced its intention to expedite the divestment process. These joint ventures were producing an industrial chemical called butanediol, which is widely used in manufacturing. 

The decision came in the aftermath of intense backlash from German reporters ZDF and Der Spiegel alleged that employees of BASF’s Chinese partner, Markor, had committed human rights abuses against the Uyghur Muslim minority in Xinjiang. France 24, a German company, reported on the developments where employees had allegedly investigated Uyghur families and passed information to the Chinese authorities.

France 24 said that BASF maintained that it had never suggested that workers from the joint ventures had committed rights violations, only that staff from its local partner had. 

Human rights organisations have often levelled allegations including forced labour, detention camps, mass surveillance, religious persecution and measures to eliminate Uyghur culture and identity. Reports suggest that millions of Uyghurs have been detained, deprived of their property and freedoms, and subjected to government measures that intend to assimilate them into Han Chinese society. 

Beijing has thoroughly rejected each charge, insisting that its actions were aimed at controlling extremism and development. 

BASF is presently building a big chemical production facility in Guangdong province with a stated investment commitment of €10 billion (USD 11.5 billion).