As the European Union prepares to impose tariffs on Chinese-made electric cars, Volvo Cars has begun moving the production of Chinese-made electric cars to Belgium, according to The Times.
In addition to moving production of Volvo’s EX30 and EX90 models to Belgium, the automaker may also move the assembly of some Volvo models to the United Kingdom, the report said, citing unnamed people. The Times said Volvo, a unit of Zhejiang Geely Holding Group Co., Ltd., is seen as the most vulnerable among Western automakers to potential tariffs.
The trade friction between the EU and China has led to a series of anti-dumping investigations against Beijing and accusations of unfair subsidies. The EU is expected to inform Chinese electric vehicle manufacturers as early as this week whether it will impose temporary tariffs from July 4 and increase import tariffs to the current level of more than 10%.
Volvo Cars denied the New York Times report, saying “it is too early to speculate on the conclusions of this investigation or the impact of any potential measures.”
“The decision to build the EX30 in Ghent reflects our ambition to build the car where we sell as many cars as possible,” a spokesman said in an emailed statement. The additional capacity in Belgium has been previously disclosed, according to the company.
China last week accused the EU of working to “suppress” Chinese companies and said it would take action to safeguard its interests.
Xinhua News Agency reported on Sunday that accusations of unfair competition against China were completely unfounded, citing earlier remarks by Commerce Minister Wang Wentao. Xinhua News Agency stated that Wang Yi expressed the hope that the EU would abandon trade protectionism and return to the path of dialogue and cooperation.
In a separate dispute, Chinese dairy companies are preparing to ask Beijing to launch an anti-dumping investigation into imports from the EU, the Global Times reported yesterday, without providing details.
