VW’s decision to sell the plant comes after years of investor pressure on the carmaker to abandon presence in Xinjiang

Despite stalled talks between both the sides, it is unlikely that Beijing would want to torpedo its ties with the EU given its trade with the US is already hurt by geopolitics

Shenzhen-listed shares of the carmaker were up 5.74% at close of trade on Monday, while its Hong Kong-listed stock was up 3.53%

The directive comes as, starting Wednesday, Chinese electric vehicles heading to Europe will be subject to tariffs as high as 45.3%

The chief of the best-selling car brand in the US has been taking trips to China and testing Chinese EVs over the past 18 months to size up the competition

The agency expects carmakers to continue working towards making cheaper and innovative EVs — with China firmly in the lead. It also predicts a hit to Europe’s GDP from the EV transition

The EU is attempting to hold talks with some EV-makers outside of official channels, shaking “the foundation and mutual trust of the negotiations,” Beijing says

Electric vehicle sales in China 'could be a record every month until the end of the year'

The European Commission looks to have gathered enough support for its planned tariffs to go through, despite pushback from major automakers and key bloc members

Hybrid vehicles drove the sales surge at top Chinese EV brands, in keeping with larger global car-buying trends

Battery-electric vehicles accounted for 8% of new vehicle sales in June and July of this year, while overall auto sales are set to drop 12% this month

China and EU have both vowed to intensify efforts to avert the tariffs, amid concerns that could trigger a 'trade war' between the economic powerhouses