Beijing/New Delhi | December 24, 2025
China has filed a formal complaint against India at the World Trade Organization (WTO), challenging New Delhi’s support measures for the solar energy and information technology (IT) sectors, alleging that they discriminate against Chinese products.
According to a WTO communication, China has requested consultations with India under the WTO’s dispute settlement mechanism, marking the first stage of the formal trade dispute process.
Allegations of Discriminatory Tariffs and Local Content Rules
Beijing claims that India’s tariff structure on certain technology products, along with policy measures that favor domestically manufactured goods over imported ones, violate WTO rules governing tariffs and trade-related measures.
China alleges that these policies unfairly disadvantage products of Chinese origin, particularly in sectors where China is a major global exporter, including solar cells, solar modules, and IT hardware.
In its submission, China stated that India’s tariff treatment and domestic-use-linked incentives “discriminate against imported products, including those originating from China,” and breach commitments under WTO agreements.
Focus on Solar Manufacturing Incentive Scheme
A key point of contention is India’s Production-Linked Incentive (PLI) scheme for high-efficiency solar photovoltaic (PV) modules. China has questioned the eligibility criteria and incentive disbursement conditions under the program.
According to China, incentives under the solar module scheme are tied to multiple conditions, including mandatory minimum domestic value addition requirements, which Beijing argues are inconsistent with WTO rules.
India’s Policy Objective
India has introduced these measures to boost domestic manufacturing capacity, strengthen supply chains, and reduce dependence on imports, particularly in strategic sectors such as renewable energy and electronics.
Next Steps in the WTO Process
Under WTO rules, consultations are the first step in dispute resolution. If the talks fail to produce a mutually acceptable outcome, China may request the WTO to establish a dispute settlement panel to adjudicate the matter.
Trade Context
China remains India’s second-largest trading partner. During the last financial year:
India’s exports to China fell 14.5% to $14.25 billion, down from $16.66 billion in FY 2023–24
Imports from China rose 11.52% to $113.45 billion
India’s trade deficit with China widened to $99.2 billion in FY 2024–25
The dispute comes amid growing global scrutiny of industrial subsidies, local manufacturing incentives, and trade protection measures as countries seek to secure strategic industries.
