Volvo is relocating its electric vehicle production base from China to Belgium to avoid tariffs from China

Volvo has begun shifting its electric vehicle production from China to Belgium, hoping that the European Union will crack down on imports subsidized by Beijing.

Geely, a major co-owner of Volvo, is considering halting the sale of electric vehicles produced in China if tariffs are imposed.

However, additional reports indicate that moving the production of Volvo's EX30 and EX90 models from China to Belgium is a necessary step the company needs to take. The company has confirmed that halting the sale of electric vehicles produced in China will no longer be considered. It is also expected that Volvo's factory in the UK might be relocated to Belgium as well.

The European Commission, which oversees trade policy in the 27-country European Union, launched an investigation last year to determine whether fully electric vehicles produced in China are receiving subsidies that distort the market and warrant additional tariffs.

The investigation into countervailing subsidies officially began on October 4th and could take up to 13 months to complete. The Commission has the authority to impose provisional measures to counteract these subsidies nine months after the investigation starts.

Relations between China and the European Union are quite strained due to various factors, including the relationship between Beijing and Moscow following Russia's invasion of Ukraine. The European Union is trying to reduce its dependence on the world's second-largest economy, especially in terms of raw materials and products essential for the green transition.

Source: ev.iphonemod / VOANews

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