By Admin 
India China Trade Tension: Neighboring country China has expressed objection to India’s electric vehicle and battery manufacturing policies. Due to which there has been trade tension between the two countries. On Wednesday, China made a formal complaint regarding this matter in the World Trade Organization (WTO). China has accused India that its new battery subsidy schemes will unfairly benefit domestic industries. Due to which Chinese companies will suffer losses. Besides, China also accused India that its new policy is a copy of China’s development model.
What is this latest controversy?
In the last few years, schemes like subsidy on EV battery manufacturing have been started by the Government of India. Due to which the central government wants to encourage domestic production. With these steps, the government wants to promote self-reliance and reduce dependence on foreign imports. These decisions may lead to a decline in the Chinese market.
This is the reason why China has opposed this new scheme of India. Angered by these things, China issued a statement saying that India should correct its mistake soon, otherwise China will take strict steps for the interest of its domestic companies.
What will be the impact on India?
Experts on global issues believe that the problem that has arisen between India and China is not just about new policies. China sees India as a strong competitor. On one hand, India wants to increase its share in the EV vehicle segment in the coming times. At the same time, China is already ahead in this sector. In such a situation, China does not want to give up its strong hold on the Indian market. This is the reason why China keeps opposing India’s development based policies.
Dispute over World Trade Organization (WTO)
If this new dispute between India and China progresses, it is possible that the World Trade Organization may advise India to change some policies. However, there are no signs of change in the new plans from India’s side. The entire focus of the central government is to be self-reliant in the segment of EV and battery manufacturing.
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