VW sells assets to address political risks and cut excess capacity, while extending its partnership with to regain market share in China.

Earlier this year, the U.S. blocked imports of several Porsche, Bentley, and Audi vehicles amid concerns that they contained a Chinese-made part that violated U.S. forced labor laws.

German carmaker Volkswagen is withdrawing from its controversial involvement in a factory in China's Xinjiang province, which has attracted criticism over alleged human-rights abuses of the Uighur minority.