The new European Union tariffs of up to 45.3% came into effect on Wednesday after a year-long investigation that divided the bloc and prompted retaliation from Beijing.

Ten EU members including France, Poland and Italy supported tariffs in a vote this month, in which five members including Germany opposed them and 12 abstained.

As Beijing continues negotiations over an alternative to tariffs, Chinese automakers including BYD 002594.SZ, SAIC 600104.SS, and Geely GEELY.UL were told at a meeting held by the Ministry of Commerce on October 10 that they should pause their heavy asset investment plans such as factories in countries that backed the proposal, said the people.

They declined to be named, as the meeting was not public.

Several foreign automakers also attended the meeting, where the participants were told to be prudent about their investments in countries that abstained from voting and were “encouraged” to invest in those that voted against the tariffs, the people said.

Italy and France are among EU countries that have been courting Chinese automakers for investments, but they have also warned of the risks that a flood of cheap Chinese EVs pose to European manufacturers.

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 center in France this year to meet growing demand for its MG-brand cars.

The Italian government is in talks with Chery, China’s largest automaker by exports, and other Chinese automakers, including Dongfeng Motor 0489.HK, about potential investments.

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, two separate people with knowledge of the matter said.

Even before Beijing issued its guidance, Chinese companies were cautious about independently setting up production sites in Europe, as it requires large sums of investment and a deep understanding of local laws and culture.

The automakers were also told at the October10 meeting that they should avoid separate investment discussions with European governments and instead work together to hold collective talks, the people said.

The directive follows a similar warning in July when the commerce ministry advised China's automakers not to invest in countries such as India and Turkey, and to be cautious with investments in Europe.