Volkswagen is closing its controversial factory in China's Xinjiang region as the company and its Chinese partner agreed to sell the assets to a buyer owned by the Shanghai government, Reuters reported.
The value of the transaction is not yet known.
The decision to leave the plant comes amid stiff competition and sluggish demand in China, which has hampered Volkswagen's sales growth.
And European car companies are facing the effects of a trade war between Beijing and the EU due to the EU imposing anti-subsidy tariffs on Chinese electric cars.
