Volvo Relocates EV Production from China to Belgium Amid EU-China Trade Tensions

Volvo is shifting its electric vehicle (EV) production from China to Belgium as the European Union (EU) considers imposing tariffs on Chinese imports. Rising trade frictions between the EU and China have led to multiple anti-dumping investigations against Beijing over allegations of unfair subsidies. The EU is expected to inform Chinese EV manufacturers this week about the potential implementation of provisional tariffs from July 4, which would increase import duties above the current 10%.

Volvo Car refuted a report by the Times, stating, “it’s premature to speculate on the implications of what this investigation will conclude, or any potential measures.” A spokesperson emphasized in an emailed statement, “The decision to also build the EX30 in Ghent reflects our ambition to build our cars where we sell them as much as possible.” The company noted that the additional capacity in Belgium had been previously disclosed.

China recently accused the EU of attempting to suppress Chinese companies and vowed to take action to protect its interests. According to Xinhua News Agency, Commerce Minister Wang Wentao dismissed the allegations of unfair competition as baseless and urged the EU to move away from trade protectionism and return to dialogue and cooperation.