While the red panda and the giant panda were once considered close relatives, recent analysis has shown that the giant panda is more closely related to bears while the red panda is closely related to raccoons. Though they are both carnivores whose habitat is in Asia, the giant panda is ursidae while the red panda is procyonidae. Therefore, they are two different species and some scientists believe they may represent two entirely separate branches of the evolutionary tree. They could not mate.
Here is a diagram of where they diverge:
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