Brussels and Beijing are holding talks at the technical level after the approval last week of lofty new tariffs on electric vehicles manufactured in China.

However, citing confidentiality reasons, the European Commission would not provide any further details about the schedule of the discussions.

"The EU and China continue to work hard to explore an alternative solution that would have to be fully WTO-compatible, adequate in addressing the injurious subsidization established by the Commission's investigation, monitorable and enforceable," the European Commission said in a statement released after the new tariffs were confirmed.

EU members split on new tariffs

Just over a year since the European Commission launched an anti-subsidy investigation into Chinese electric vehicles, EU member states voted on Friday over whether to introduce tough new tariffs.

According to reports, 10 members voted in favor and five voted against, with 12 countries abstaining. The bloc's largest single economy, Germany, was amongst the countries that voted against the proposals. France, however, is reported to have backed the move.

The new tariffs range from 7.8 percent for Tesla cars to 35.3 percent for SAIC. They are expected to come into force at the start of November, coming on top of existing 10 percent duties.

In response, China's commerce ministry described the tariffs as "unfair, non-compliant and unreasonable." 

Beijing has already raised its concerns about the European Commission's investigation with the World Trade Organization.

"The EC's (European Commission's) unfair use of trade tools to hinder free trade in electric vehicles, along with this protectionist approach, will ultimately weaken the resilience of the European electric vehicle industry, disrupt the level playing field, and undermine the EU's own green transition," said the China Chamber of Commerce to the EU in a statement reacting to the vote.

Fears of a wider trade war

As the dust settles on Friday's decision, there are now fears the dispute over electric vehicles could escalate into a wider trade war between Brussels and Beijing.

In recent months, China has launched its own investigations into imports of dairy, pork and brandy from the E.U.

Germany's Finance Minister Christian Lindner said in a post on X last week that the European Commission "should not trigger a trade war despite the vote in favor of possible punitive tariffs against China," calling for a "negotiated solution."

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