China has filed a formal complaint with the World Trade Organisation, challenging India's subsidy programs related to electric vehicles and battery production.
According to the Ministry of Commerce of the People's Republic of China (MOFCOM), the complaint alleges that India's subsidy measures amount to import substitution subsidies, which are prohibited under WTO rules. China claims that these subsidies grant Indian industries an unfair competitive advantage in the growing EV and battery sectors.
China has called for consultations at the WTO, urging India to address and correct what it described as erroneous practices. The Chinese government also stated that it will take necessary measures to safeguard the rights and interests of its domestic industries affected by India's policies.
The Indian Commerce Ministry officials, while reacting to China's WTO complaint against India, said they will look at the detailed submissions made by Beijing.
China has also filed similar complaint against the European Union, Turkey and Canada, they pointed out.
The fresh development comes days after India stepped up scrutiny of Chinese imports, launching a series of anti-dumping investigations across multiple product categories. In September, the Directorate General of Trade Remedies (DGTR) initiated probes into mobile phone covers, solar cell encapsulants, rubber chemicals, and acids from China.
Despite the frictions, the Sino-Indian ties are seen to have entered into a positive trajectory, with Prime Minister Narendra Modi visiting China for the first time in seven years, to attend the Shanghai Cooperation Organisation summit in August. He also held talks with Chinese President Xi Jinping during his visit.
The two countries are also expected to resume direct flights this month, following a pause since the outbreak of Covid-19 pandemic in 2020.
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