China moves WTO against India over tariffs and subsidies

China moves WTO against India over tariffs and subsidies

Beijing:China has filed a case at the World Trade Organization challenging Indian tariffs on technology products and government subsidies for the solar energy sector, marking a new phase in growing trade tensions between the two Asian economies.

In a statement issued on Friday, China’s commerce ministry said India’s import duties on information and communications technology products, along with subsidies given to its domestic solar industry, violate global trade rules and harm the interests of Chinese exporters. Beijing said these measures give Indian companies an unfair advantage and restrict market access.

China urged India to respect its commitments under WTO agreements and correct what it described as discriminatory trade practices. The case has been formally registered at the WTO, triggering a consultation process between the two countries.

This latest move follows earlier action taken by China in October, when it sought WTO consultations over Indian incentive schemes for electric vehicles, batteries and automobile manufacturing. Those programmes are part of India’s broader push to strengthen domestic manufacturing and reduce dependence on imports, especially from China.

Under WTO rules, the initial consultation stage allows both sides to try to resolve the dispute through dialogue. If no solution is found within about two months, China can ask for a dispute panel to be set up, a process that can take several months or even years.

India has not yet issued a detailed public response to the latest complaint. In previous trade disputes, New Delhi has argued that its tariff and subsidy policies are consistent with WTO rules and are necessary to support local industry and economic development.

Trade experts say the case highlights increasing friction as countries use industrial policies to protect strategic sectors such as technology and renewable energy. The outcome could have wider implications for global supply chains and future trade rules in fast growing industries.


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