According to a report from the Times, Volvo Car AB has initiated a transition in the production of its Chinese-made electric vehicles to Belgium. This move comes in anticipation of potential tariffs on China-made EVs by the European Union. It’s mentioned that Volvo may not only transfer production of its EX30 and EX90 models to Belgium but also consider relocating assembly of certain Volvo models intended for the UK. The Times, citing anonymous sources, notes that Volvo, owned by Zhejiang Geely Holding Group Co., is perceived as particularly vulnerable among western automakers to the looming tariffs.
Tensions in trade relations between the EU and China have resulted in a series of anti-dumping investigations against Beijing, with allegations of unfair subsidies being central to the disputes. The EU is expected to make a decision this week on whether to impose provisional tariffs starting from July 4, potentially increasing import duties beyond the current 10% level.
Volvo Car refuted the claims made by the Times, asserting that it’s premature to speculate on the outcome of the investigation or any consequent measures. A spokesperson emphasised the company’s commitment to manufacturing cars where they are sold, highlighting the decision to produce the EX30 in Ghent as part of that strategy. This additional capacity in Belgium had already been disclosed by the company.
Meanwhile, China has accused the EU of attempting to stifle Chinese companies and has vowed to take action to protect its interests. The allegations of unfair competition were dismissed as baseless by Commerce Minister Wang Wentao, who urged the EU to eschew trade protectionism and return to cooperative dialogue, as reported by Xinhua News Agency.
In a separate development, Chinese dairy companies are reportedly gearing up to request an anti-dumping investigation against imports from the EU, as per a report from the Global Times. Further details on this matter were not provided.