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.

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.

China has initiated a trade dispute with Turkey at the World Trade Organization over tariffs on electric vehicles. Beijing claims these tariffs are discriminatory and violate WTO rules. Turkey recently imposed additional tariffs and conditions on Chinese vehicles.