Increasing trade friction, China files WTO complaint against India over electric vehicle and battery subsidies, alleging discrimination.
China has lodged a complaint against India in the World trade Organisation (WTO), challenging India’s subsidies for electric vehicles and batteries.
According to China, the measures of the subsidy violate multiple WTO obligations that include import substitution subsidies and the principle of national treatment. These are explicitly prohibited under the multi-lateral trade rules.
The complaint arrives as Beijing aims to increase electric vehicle exports to India, following both nations’ steps to normalise relations after a five-year freeze caused by the Eastern Ladakh standoff. With India’s vast auto market, Chinese EV makers see a major opportunity to expand their overseas sales.
The Commerce Ministry of China claims that these measures benefit India’s domestic industries and undermines its own legitimate interests.
According to PTI, India’s Commerce Secretary Rajesh Agrawal stated that the ministry will review China’s detailed submissions. An official noted that China has initiated similar WTO consultations with Turkey, Canada, and the European Union. Under WTO rules, requesting consultations is the first step in resolving disputes. However, if no satisfactory solution is reached, a panel may be established to make a ruling.
China is the second largest trading partner of India. In 2024-25, India’s exports to China dropped 14.5% to USD 14.25 billion, while imports grew 11.5% to USD 113.45 billion, pushing the trade deficit to USD 99.2 billion.
