Volvo Cars’ electric car production is being moved from China to Belgium. Therefore, the Swedish automaker is preparing for the upcoming European Union decision on whether or not to increase import tariffs for Chinese electric car manufacturers, the British newspaper The Times reported based on informed sources.

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Volvo Cars is majority owned by the Chinese Zhejiang Geely Holding Group, and according to the newspaper, this relates to the production of the EX30 and EX90 models. Sources told The Times that the original idea was to stop sales of these Chinese-made cars in Europe. The British newspaper now wrote: “Sources close to the company have confirmed that suspending sales of electric cars made in China is no longer under consideration.”

Trade tensions

The European Union is expected to inform Chinese electric vehicle exporters this week about a possible increase in import tariffs. This will come into effect from July 4. Currently, this rate remains 10 percent.

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Trade tensions increased between the European Union and China after Brussels announced an investigation into subsidies for electric cars from the Asian country. The European Commission has also recently opened several investigations into tenders in which Chinese companies may participate with state support.