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 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.