China has escalated its trade tensions with India by filing a formal complaint at the World Trade Organization, targeting New Delhi’s tariffs on technology imports and subsidies linked to key manufacturing sectors. Beijing’s request for consultations marks the first step in the WTO’s dispute‑settlement process and reflects a widening rift between Asia’s two largest economies.
According to China’s Ministry of Commerce, India’s tariff regime on information and communication technology (ICT) products and its subsidy frameworks for solar photovoltaic manufacturing and other industrial schemes violate multiple WTO obligations, including bound tariff commitments and the principle of national treatment. China argues that several of India’s incentives—particularly those tied to domestic production—constitute prohibited import‑substitution subsidies, giving Indian firms an unfair advantage in sectors such as telecom equipment and renewable energy.
The case builds on earlier Chinese challenges filed in 2025, including disputes over India’s electric‑vehicle and battery‑sector subsidies under the Production‑Linked Incentive (PLI) scheme. Together, the filings underscore Beijing’s growing pushback against India’s industrial policies, which have become central to Prime Minister Narendra Modi’s “Make in India” strategy.
India has not yet issued a detailed response, but officials have previously defended the country’s tariff and subsidy structures as compliant with WTO rules and essential for building domestic manufacturing capacity.
Under WTO procedures, both sides now enter a 60‑day consultation window to seek a negotiated resolution. If talks fail, China may request the establishment of a dispute panel—potentially setting the stage for one of the most consequential trade battles between the two regional powers in recent years.
World Trade Organization, Hq Picture by WTO on Flickr
