Volvo Car shifts electric vehicle production to Belgium from China

(Bloomberg)– Volvo Car AB has started shifting manufacturing of electric vehicles made in China to Belgium as the European Union prepares to impose tariffs on electric vehicles made in China, the Times reported.

In addition to moving production of Volvo EX30 and EX90 models to Belgium, the automaker could also shift assembly of some Volvo models to the United Kingdom, the report said, citing unidentified people. Volvo, which is owned by Zhejiang Geely Holding Group Co., is considered the Western automaker most exposed to potential tariffs, the Times said.

Trade frictions between the EU and China have led to a series of anti-dumping investigations against Beijing amid allegations of unfair subsidies. The EU is expected to tell electric vehicle makers in China as early as next week whether it will impose interim tariffs from July 4 that would raise import duties above the current level of 10%. Last week, China accused the EU of seeking to “crack down” on Chinese companies and said it would take measures to safeguard its interests.

Accusations of unfair competition against China are completely unfounded, Xinhua news agency reported today, citing earlier comments by Commerce Minister Wang Wentao. Wang said he hoped the EU would abandon trade protectionism and return to the path of dialogue and cooperation, Xinhua reported.

In another dispute, Chinese dairy companies are preparing to ask Beijing to open an anti-dumping investigation into imports from the EU, the Global Times reported yesterday, without providing details.