BERLIN, Dec 6 Reuters Volkswagen must regularly check its operations in China to ensure its supply chains are safe and comply with human rights laws, two of the carmaker39;s investors said, after an audit of its jointly owned Xinjiang site found no sign of forced labour.

The demands made by Union Investment and Deka Investment on Wednesday reflect ongoing concerns over Volkswagen39;s engagement in the Xinjiang region, where rights groups have documented abuses including forced labour in detention camps.

Beijing denies any such abuses.

The result of the Volkswagencommissioned audit comes as Germany is carefully recalibrating its relationship with China, its biggest trading partner, to reduce its exposure to a market that is also a systemic rival.

Volkswagen said on Tuesday that the muchanticipated audit, which was carried out by Germany39;s Loening Human Rights Responsible Business GmbH and two Chinese lawyers from a firm in Shenzhen, had found no evidence of forced labour.

While calling the audit a step in the right direction, Henrik Pontzen, who heads sustainability and ESG at Union Investment, said Volkswagen had not yet reached its goal.

There is still a lot to do In China, audits must not remain a oneoff exercise. A functioning complaints management system must also be established, he said.

He also said that Volkswagen39;s corporate governance, which has drawn criticism from some of its smaller shareholders, remained the Achilles heel of Europe39;s top…