Chinese component banned: thousands of Porsches, Bentleys and Audis blocked in the US

Thousands of Porsches, Bentleys and Audis are stuck in US ports after a supplier of the Volkswagen car group, which owns the three brands, found a Chinese sub-component in the vehicles, in violation of a US law against forced labour. This was reported by the Financial Times. According to two sources in the newspaper, the German group will have to delay delivery of the vehicles until the end of March, at the latest, to replace the electronic component produced in western China. Volkswagen itself notified the US authorities of the incident.

Washington banned the import of products made in the western region of Xinjiang and other parts of China under the 2021 law against forced labour exploitation of the Uyghurs, a Muslim minority. Sources did not confirm whether the component was produced in Xinjiang. The blockade affects one thousand Porsches, several hundred Bentleys and several thousand Audis, according to the newspaper sources. The German group is criticised by human rights groups for a plant it owns with a Chinese partner, Saic, in Urumqi, the capital of Xinjiang, where 'crimes against humanity' are allegedly being committed, according to Human Rights Watch, the largest human rights organisation based in New York. Volkswagen would not comment.

Volkswagen is trying to balance its declining sales in China with an increased presence in the US at a time of high tensions between Washington and Beijing. According to the Financial Times, the discovery of the component banned by US law was made around mid-January. The group then alerted the US customs authorities and, with their approval, ordered the replacement of the electronic component, which began last week. It is a relatively easy component to replace, explains the Financial Times, which is why Volkswagen expects to be able to finish by the end of next month.