By Admin 
China files complaint against India: Neighboring country China has once again shocked India. India, which is moving closer to the dragon after American high tariffs, has filed a complaint with the World Trade Organization regarding the subsidy being given by New Delhi on electric vehicles and batteries. China has objected to some incentive schemes adopted by India. These schemes include Production Linked Incentive (PLI) Scheme, National Program on Advanced Chemistry Cell (ACC) Battery Storage, PLI Scheme for Motor Vehicles and its Components and Scheme to Promote Manufacturing of Electric Passenger Cars in India.
The Chinese Commerce Ministry has alleged that the steps taken by India violate many conditions of the World Trade Organization (WTO). According to the ministry, these steps violate the principle of national treatment and fall under import substitution subsidies, which are explicitly prohibited under multilateral trade rules.
China filed a complaint
China says that these Indian schemes promote the use of domestic (Indian) products over imported goods and thus discriminate against goods made in China. China has alleged that these steps of India violate some major international agreements of WTO. These include the Subsidies and Compensatory Measures (SCM) Agreement, the General Agreement on Tariffs and Trade 1994 (GATT 1994) and the Trade-Related Investment Measures (TRIMs) Agreement. China argues that as a result of these measures, the benefits it receives are being directly or indirectly neutralized.
According to WTO rules, the first stage of the dispute settlement process is consultation. China has sought consultations with India on these issues and said it hopes to agree on a mutually convenient date for India’s response and consultations. If the consultations do not yield a solution, a formal committee can be set up under the WTO to adjudicate on the dispute.
What are WTO rules?
Both India and China are members of WTO. According to WTO rules, if a member country feels that another member’s policy or scheme is harming its exports, it can file a complaint under this mechanism. China is India’s second largest trading partner. India’s exports to China declined by 14.5 percent to US $ 14.25 billion in the financial year 2024-25, whereas in 2023-24 it was $ 16.66 billion. At the same time, imports from China increased by 11.52 percent to US $ 113.45 billion, which was $ 101.73 billion in 2023-24. As a result, India’s trade deficit with China increased to US$99.2 billion.
This complaint of China regarding the subsidy being given on Indian electric vehicles has come at a time when it wants to increase the export of its electric vehicles to India. India’s automotive market is huge and rapidly growing, which Chinese electric vehicle manufacturers see as a big opportunity.
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