China's automotive lighting manufacturer, Xingyu, recently issued a formal apology after controversially terminating the contracts of over 100 recent university graduates in August 2026. The company reportedly used coercive tactics, including threats of future background checks, to pressure new hires into resigning due to shifting market conditions. In response to the backlash and a government investigation, Xingyu has suspended its human resources director and pledged to provide financial subsidies and housing assistance to those affected.

On 1 September 2026, Volkswagen announced that it had launched an investigation into Xinyu's dismissal incident. The company stated that it would take 'appropriate steps' once the investigation was complete.

While Xingyu is pursuing a dual primary listing in Hong Kong to better finance its global expansion plans, Chinese media have reported that some affected graduates have also lodged complaints with the Hong Kong stock exchange regarding the company's labour practices.