Chinese automakers have been told to halt big investment in European countries that support the imposition of tariffs on Chinese-built electric vehicles (EV), according to an exclusive report by Reuters on Thursday quoting sources with knowledge of the matter.

The new European Union (EU) tariffs of up to 45.3% came into effect on Wednesday and has prompted some form of retaliation from Beijing.

As reported, in a non-public meeting in early October, the Chinese Ministry of Commerce told Chinese automakers including BYD Co Ltd, SAIC Motor Corp Ltd, and Geely Holding that they should pause their heavy asset investment plans such as setting up factory plants in European countries that supported the proposal.

Ten EU members including France, Poland and Italy supported the import tariffs in a vote, whereas five members including Germany opposed them. Twelve member countries abstained.

The import tariffs do not have the support of the majority of the EU's 27 member states but the opposition in the vote was not enough to block the new taxes, reported AFP.

Prior to this, Chinese companies were already cautious about independently setting up production sites in Europe as the move requires large sums of investment and a deep understanding of local laws and culture.

The automakers were also told in the early-October meeting that they should avoid separate investment negotiation with European governments and instead work together to hold collective talks.

State-owned SAIC, China's second-largest auto exporter, is choosing a site for an EV factory in Europe and has been separately planning to open its second European parts centre in France this year to meet growing demand for its MG-brand cars.

BYD is building a plant in Hungary, which voted against the tariffs. The Chinese EV giant has also been considering relocating its European headquarters from the Netherlands to Hungary due to cost concerns.