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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Former indian ambassador seshadri on china us trade policies: In recent times, US President Donald Trump’s tariff policy has created a stir all over the world. Amidst Bhurajnial tension, Trump’s high tariff has caused heavy damage to the economy of many countries. In such a situation, former India Ambassador VS. Seshadri has strongly criticized the policies of both Washington and Beijing.

Seshadri, former Indian Foreign Service (IFS) officer, who has served as India’s envoy in Slovenia and Myanmar, said that the US tariff policy has shook the global trade system with uncertainty and unilateral actions in the US tariff policy and the race of technology dominance around the world.

Turbulence from China-American policy

Seshadri said during a lecture at the India International University of Legal Education and Research on the subject of “International Trade Act: Challenges and Views” that these developments have weakened the necessary forecasts and stability for global trade. He explained in detail about the US, European Union (EU) and China’s strategies and their influences on India.

Significantly, the US, EU and China have about 42 percent stake in global trade. Referring to the policies of America, he said that in the second term of President Trump, the US has expanded unilateral measures and has also imposed tariffs on the Free Trade Agreement (FTA) partners under the guise of “counter -duty”.

Trump’s unilateral actions

According to the International Trade Expert Seshadri, these steps are now being used not only to promote trade balance and domestic manufacturing, but also for wide goals such as economic security, immigration control, punishment of Russian oil buyers and dealing with drug trafficking.

He said that bilateral agreements imposed by the US often binds partner countries to import energy, agriculture and defense from the US, while in return only partial tariff cuts are offered. These arrangements can be contrary to the rules of the World Trade Organization (WTO).

Indirect comment on Pakistan

Without naming Pakistan, Seshadri said, “A neighbor country has chosen a suicide path by handing over its resources to America under the guise of bilateral trade agreement.” He also mentioned the legal challenge in the US against the powers of the President of imposing tariffs under emergency measures and described it as the “most important business case”, on which the US Supreme Court will now give a verdict.

Democrats of the US House Foreign Affairs Committee have criticized President Donald Trump and his administration. He says that only India is being targeted to buy oil from Russia, while big buyers like China are exempted.

Tariff damage to America and relations
Democrats say that 50% of tariffs on Trump’s Indian imports have damaged Americans and are damaging Indo-US relations made up of the last two decades of bipartite attempts. He said that “instead of banning China or other countries, only targeting India is weakening the US-India relations. It is almost as the case is not related to Ukraine.”

NYT report cited
The panel, citing the report of the New York Times, said that if the Trump administration had imposed a secondary ban on every country buying oil from Russia, the matter was different. But by focusing only on India, this has become the most confused policy result, because China is still buying Russian oil at a discount after getting discounts.

New tariffs and effects
The attack of Democrats came when the additional 25% tariffs (above 25% applied) applied by Trump became effective. In this way the tariff rate has doubled. Trump has linked it to India’s Russian oil trade.

According to the Government of India, these tariffs will have an impact on export of $ 48.2 billion. Officials have warned that new duties can make the US a commercially non-practical, which can reduce employment and slow the economic growth.

Modi government’s attitude
Prime Minister Narendra Modi has clarified that India will not bow under pressure. However, the US has exempted some sectors such as pharmaceuticals and electronic goods, which has given partial relief to India.

Status of trade relations
Indo-US trade relations have been strengthened in recent years, but they are still affected by controversies on market access and domestic political pressures. India was in early countries that started trade talks with the Trump administration, but so far no agreement has been reached as America has been demanding more reach in India’s agriculture and dairy sector.

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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