As the EU moves to impose steep tariffs on Chinese electric vehicles, China finds itself at a pivotal juncture in its evolving trade relationship with Europe.

China has threatened to raise tariffs on large-engine vehicles and said it will start collecting duties on cognac, in moves that would hit the EU’s two largest economies.

China urged the European Union not to conduct price negotiations with individual electric vehicle manufacturers, as eight rounds of negotiations in Brussels failed to result in an agreement over planned tariffs by the bloc.