Beijing said preliminary findings of an investigation had determined that dumping of brandy from the European Union threatens ‘substantial damage’ to its own sector

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.

The move came days after the European Union pressed ahead in adopting definitive tariffs of up to 45% on China-made battery electric vehicles last Friday.