Volvo, majority-owned by China's Geely, is relocating production of Chinese-made electric vehicles to Belgium.

The move aims to avoid potential EU tariffs on Beijing-subsidised imports.

The European Commission is investigating alleged state subsidies for Chinese EVs, with a decision expected soon.

Volvo may cease sales of Chinese-built EVs in Europe if tariffs are imposed.

The company plans to expand production capacity in Ghent for EX30 models starting in 2025.

This strategic move aligns with Volvo's strategy to build cars where they are sold and adapt to changing market conditions.

Analysts warn of possible retaliation from Beijing and the impact on companies reliant on Chinese production.