China has filed a complaint at the WTO (World Trade Organization) against India, challenging New Delhi’s support measures for the solar and information technology sectors.
According to a WTO communication, Beijing has requested consultations with India under the WTO’s dispute settlement mechanism, alleging that India’s tariff treatment and incentive-linked measures discriminate against Chinese goods.
China argues that certain policies favor the use of domestically produced goods over imported ones, putting foreign suppliers, including Chinese exporters, at a disadvantage.
China is a major exporter of products in the solar cell, solar module, and information technology segments. In its submission, it said India’s measures breach multiple 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.
“My authorities have instructed me to request consultations with the Government of India with respect to the tariff treatment that India accords to certain technology products, and to certain measures adopted by India that are contingent upon the use of domestic over imported goods or that otherwise discriminate against goods of Chinese origin,” China said in the communication.
The complaint specifically raises concerns over India’s Production Linked Incentive Scheme under the National Program on High Efficiency Solar PV Modules. China said eligibility and incentive disbursement under the scheme are subject to conditions such as prescribed minimum local value addition requirements, which it claims distort trade.
India has introduced these measures as part of its broader strategy to strengthen domestic manufacturing and reduce reliance on imports, particularly in strategically important sectors such as renewable energy and electronics.
Under WTO rules, seeking consultations is the first formal step in the dispute settlement process. If the consultations fail to resolve the matter, China may request the establishment of a dispute settlement panel to rule on the issues raised.
China is India’s second-largest trading partner. In the last fiscal year, India’s exports to China fell by 14.5% to $14.25 billion from $16.66 billion in 2023–24. Imports from China rose by 11.52% to $113.45 billion from $101.73 billion, widening India’s trade deficit with China to $99.2 billion in 2024–25.
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