China is investigating whether to raise tariffs on European large-engine vehicles and will start collecting levies on brandy, escalating a trade spat after the European Union decided to impose tariffs on Chinese electric vehicles.

China warns EU against separate EV pricing talks, urges resumption of negotiations, and threatens retaliation if EU imposes high tariffs on Chinese EVs amid ongoing trade tensions.

Since September 20, China and the EU have held eight rounds of intensive consultations in Brussels regarding the EV tariff issue. However, the EU has not sufficiently addressed the core concerns of industries on both sides, resulting in significant differences and the inability to reach a mutually acceptable solution.

China urged the European Union not to conduct price negotiations with individual electric vehicle manufacturers, as eight rounds of negotiations in Brussels failed to result in an agreement over planned tariffs by the bloc.

China urged the European Union on Saturday not to conduct separate negotiations over the price of China-made electric vehicles sold in the EU, warning that this would "shake the foundations" of bilateral tariff negotiations.

The latest negotiations over European Union tariffs on Chinese electric vehicles ended in Brussels with "major differences" remaining, Beijing's commerce ministry said Saturday. "There are still major differences between the two sides,

General Motors Co. sold more electric vehicles and plug-in hybrids than conventional gasoline cars in China for the first time last quarter, though the milestone comes as total deliveries continue to fall.

German Chancellor Olaf Scholz's rejection of EU tariffs on Chinese electric vehicles failed to stop fellow European Union members voting in favour, exposing how a divided Berlin is struggling to drive EU policy.

European Union officials are bracing for an onslaught of retaliatory trade actions after a team of Chinese officials tasked with resolving an EV tariff row were hauled back to Beijing over the weekend.

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In the EU's decision to impose tariffs on China-made EVs, the bloc set tariff rates on top of the 10% car import duty ranging from 7.8% for Tesla to 35.3% for SAIC and other producers deemed not to have cooperated with its investigation.