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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Brazilian President Louis Inecio Lula Da Silva has flatly refused to talk to US President Donald Trump. He says that “If Trump does not want to talk then why should I call?” This statement came when the US imposed an additional 40% tariff on Brazil’s imports, causing the total tariff to 50%. The move was described by Lula as the saddest day of Brazil-US bilateral relations.

In this stressful atmosphere, Lula clarified that he would now talk to other BRICS leaders, including Chinese President Xi Jinping, Prime Minister of India Narendra Modi and others. He said that “I will call Xi Jinping, I will call Prime Minister Modi. I will not call Putin, because he cannot travel.” This is a clear indication that Brazil will now prioritize diplomatic and business dialogue with BRICS countries instead of America.

Tariff and Brazil’s response by America
According to the warning given by US President Donald Trump, whatever countries will support the policies of BRICS that will be against the interests of America, they will have to pay 10% additional fees. A sudden 40% fee imposed on Brazil has made a huge impact on Brazil’s exports. Lula raised his voice against this decision and said that Brazil would use all available means including the World Trade Organization (WTO) to protect its business interests. Brazil’s Finance Minister Fernando Haddad also commented on this, saying that Lula is ready to take strict steps on the issue.

Judiciary dispute and human rights issue
The Trump administration and the US State Department have also disagreed over a decision by the Brazilian judiciary. In fact, the Supreme Court of Brazil has put former President Zayer Bolsonaro under house arrest on charges of conspiracy to coup. The US has called it a “human rights violation”.

Justice Alexander de Mores, who is overseeing the matter. However, the US has imposed restrictions under the Magnitsky Act. The US alleges that D Mores is misusing the court to suppress the opposition voices. D Morace replied that he will continue to perform his duties.

Brics vs America
This development indicates a significant turn in global politics. On one hand, there is America, which wants to create global relations according to trade protectionism and its priorities. On the other hand there are organizations like BRICS, which are active to create multilateralism and new economic poles. Lula’s contact with BRICS leaders ignoring Trump is a clear indication that Brazil is now moving towards taking an independent stance in global politics.

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