China has filed a dispute at the World Trade Organisation (WTO) against India, challenging India’s tariffs on information and communications technology (ICT) products and subsidies granted to the domestic photovoltaic sector, the China’s commerce ministry said on Friday.
In a statement, China alleged that India’s measures provide its domestic industries with an “unfair competitive advantage” and harm Chinese commercial interests. Beijing argued that the tariffs and subsidies violate WTO rules and commitments undertaken by India as a member of the multilateral trade body.
China alleges violation of WTO commitments
According to the Chinese commerce ministry, India’s policies on ICT products and solar manufacturing run counter to established WTO disciplines on trade liberalisation and fair competition.
“We once again urge India to abide by its relevant commitments at the WTO and immediately correct its erroneous practices,” the ministry said, signalling Beijing’s intent to pursue the matter through the WTO’s dispute settlement mechanism.
The case comes at a time when trade frictions between the two Asian economies are intensifying, particularly in sectors seen as strategically important for future growth and technological self-reliance.
Focus on ICT tariffs and solar subsidies
India has, in recent years, raised tariffs on several ICT products as part of its push to encourage domestic manufacturing and reduce dependence on imports. Similarly, the government has rolled out incentive schemes to boost local production of solar modules and photovoltaic components, aiming to strengthen the renewable energy supply chain.
China, a dominant global supplier of electronics and solar equipment, contends that these measures distort trade flows and discriminate against foreign producers, especially Chinese firms with a strong presence in both sectors.
Part of wider trade tensions
The WTO dispute adds to the growing list of trade-related disagreements between India and China, whose bilateral trade remains heavily imbalanced. While India has sought to protect and nurture domestic industries, China has repeatedly raised concerns about market access and policy barriers.
Trade experts note that the WTO process could take several years, involving consultations, panel proceedings and possible appeals. In the meantime, both countries are expected to continue engaging diplomatically, even as they defend their respective policy positions.
India has not yet issued an official response to China’s filing at the WTO.