Amid Beijing's threats of retaliation, member states need to decide if they want to slap additional import tariffs on Chinese electric vehicles.

The European Union should seek a compromise and negotiated outcome with China, Spain said on Thursday, on the eve of a crucial EU vote on electric vehicle (EV) tariffs.

The European Union and China will continue negotiations to find an alternative solution to tariffs even if member states vote in the coming days to impose levies on electric vehicles, according to people familiar with the matter.