China Challenges India's Trade Policies at WTO
China has formally filed a complaint with the World Trade Organization (WTO) against India, targeting its subsidies for the solar photovoltaic sector and tariffs on information and communications technology (ICT) products. The complaint, announced by China's Ministry of Commerce on Friday, December 19, 2025, alleges that these Indian policies provide an unfair competitive advantage to domestic industries and harm Chinese interests, thereby violating international trade rules.
Allegations of WTO Rule Violations
Beijing's complaint asserts that India's measures contravene several WTO obligations, including the fundamental national treatment principle. Furthermore, China claims that India's solar sector subsidies amount to import substitution subsidies, which are explicitly prohibited under WTO regulations. The Chinese Ministry of Commerce urged India to 'abide by its relevant commitments at the WTO and immediately correct its erroneous practices.'
The complaint highlights specific concerns regarding India's efforts to boost domestic manufacturing, such as the 'Make in India' campaign and policies aimed at reducing reliance on imported solar modules. China, a significant global supplier of solar equipment and ICT components, views these policies as detrimental to its exports.
Escalating Trade Tensions and Dispute Process
This latest action marks the second WTO complaint China has initiated against India this year, underscoring growing trade frictions between the two Asian economic powers. In October, China had previously challenged India's subsidies for the electric vehicle (EV) and battery sectors.
The filing of the complaint initiates the first formal step in the WTO's dispute settlement process: consultations. This stage allows both countries up to 60 days to discuss and potentially resolve the dispute bilaterally. Should these consultations fail to yield a resolution, China reserves the right to request the formation of a WTO dispute panel to adjudicate the matter.
Historical Context of Solar Trade Disputes
This is not the first time India's solar policies have faced scrutiny at the WTO. In 2013, the United States filed a similar complaint against India's Jawaharlal Nehru National Solar Mission (JNNSM), specifically challenging its domestic content requirements. The WTO ultimately ruled against India in 2016, finding that these 'localization' rules discriminated against imported solar cells and modules and violated international trade rules. This historical precedent adds a layer of complexity to the current dispute, as it indicates a consistent pattern of challenges to India's domestic manufacturing incentives in the renewable energy sector.
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