The European Union’s decision to impose tariffs on Chinese electric vehicles has moved the focus to how and when Beijing will retaliate for the escalation in its biggest trade dispute with the bloc in years.

China has imposed anti-dumping policies on EU brandy following the bloc's vote to impose tariffs on Chinese EVs last week. The move is being seen as a retaliatory measure and could fuel fears that a US-style trade war with China has arrived in Europe.

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.