Forced labour is a “fabrication” by external forces looking to hurt China’s development, and the relevant enterprises should respect the facts and distinguish between what is right and wrong, said Mao Ning, a spokesperson at the foreign ministry, at a regular news conference, when asked about the concerns of German companies there.

Rights groups have presented documentation that the ethnic minority Uyghur population is subjected to forced labour in detention camps, pressuring Western companies in Xinjiang to audit their operations in the region. Beijing has vehemently rejected the allegations.

“Some political forces have spread too many rumors about Xinjiang in the world and created too much false information,” said Mao.

“We hope that the relevant enterprises can respect the facts, distinguish right from wrong, and cherish the opportunities for investment and development in Xinjiang,” she said.

On Feb 9, German chemicals giant BASF said it would sell its stakes in two joint ventures in Xinjiang, after rights groups documented abuses including forced labour in detention camps.

BASF said recently published reports related to its joint venture partner contained serious allegations that indicated activities “inconsistent” with the company’s values.

Several days later, Volkswagen said it was in talks with its joint venture partner in China over the future direction of its business activities in Xinjiang.

Stephan Weil, the premier of the German state of Lower Saxony — Volkswagen’s second-biggest shareholder — has called the reports of forced labour “concerning”, adding his government supported reviewing different scenarios for the business.