Coming days after India imposed five year anti dumping duties on Chinese imports, Beijing has escalated the trade dispute.
China has launched a trade dispute against India at the World Trade Organization (WTO), challenging New Delhi’s support measures for the solar and information technology sectors. Beijing has sought consultations under the WTO’s dispute settlement mechanism, marking the first formal step in the process.
According to a WTO communication, China has alleged that India’s tariff treatment for certain technology products and incentive measures linked to the use of domestic goods discriminate against Chinese exports. China is a major supplier of products in the solar cell, solar module and IT segments affected by the measures.
Beijing has argued that India’s policies breach several WTO agreements, including the General Agreement on Tariffs and Trade 1994, the Agreement on Subsidies and Countervailing Measures, and the Agreement on Trade Related Investment Measures. In its request, China said it was seeking consultations over India’s tariff regime and support measures that favour domestic goods over imports or otherwise disadvantage products of Chinese origin.
The complaint specifically targets India’s PLI scheme, particularly the National Programme on High Efficiency Solar PV Modules. China has raised concerns over eligibility and disbursement conditions under the scheme, including minimum local value addition requirements tied to incentives.
India has introduced these measures to strengthen domestic manufacturing capacity and reduce reliance on imports, especially in strategic sectors such as renewable energy and electronics.
Seeking consultations is the initial stage of the WTO dispute settlement process. If the talks fail to resolve the issue within the stipulated period, China may request the establishment of a dispute settlement panel to adjudicate the matter.
