China Takes India To WTO Over Telecom Tariffs, 'Make In India' Subsidies

China has escalated its trade dispute with India at the World Trade Organization (WTO), formally challenging New Delhi’s tariff measures and subsidy policies related to telecom products and photovoltaic manufacturing.

China’s Commerce Ministry said it submitted a request for consultations with India on Dec. 19, 2025, triggering the first stage of a WTO dispute. The complaint targets India’s tariffs on certain telecom products as well as subsidy measures linked to photovoltaic manufacturing, which Beijing alleges breach multiple WTO obligations.

According to China, India’s actions violate bound tariff commitments and the principle of national treatment under WTO rules. Beijing has also argued that the measures amount to import-substitution subsidies, which are prohibited under multilateral trade norms, and unfairly advantage domestic Indian industries at the expense of foreign suppliers, including Chinese companies.

"This is another firm step taken by China to safeguard the legitimate rights and interests of its domestic industries," the Chinese Commerce Ministry said, noting that the case follows a previous WTO challenge against India over electric vehicle and battery subsidy schemes. China urged India to abide by its WTO commitments and “immediately correct its wrong practices."

The consultation request gives both sides up to 60 days to resolve the dispute bilaterally. If talks fail, China could seek the establishment of a WTO dispute settlement panel to adjudicate the matter.

The move comes amid heightened trade frictions, as India in recent years has deployed higher tariffs and incentive-linked subsidy schemes to boost domestic manufacturing under its self-reliance push, while China remains a dominant global supplier of telecom hardware and solar components.