China has formally lodged a complaint against India at the World Trade Organisation (WTO), alleging that India’s subsidies for electric vehicles (EVs) and batteries breach global trade rules and unfairly disadvantage Chinese industries.
According to the Ministry of Commerce (MOFCOM), Beijing submitted a request for consultations with New Delhi on Wednesday, challenging India’s incentive measures that, it claims, discriminate against foreign producers and promote domestic manufacturing in violation of WTO obligations.
The MOFCOM spokesperson stated that India’s policies “constitute import substitution subsidies and violate the national treatment principle,” giving domestic companies an undue edge over international competitors. China argues that such measures distort market competition and undermine the interests of Chinese enterprises engaged in the EV and battery sectors.
“China will take resolute steps to safeguard the legitimate rights and interests of its domestic industries,” the spokesperson emphasised. The ministry further warned that several of India’s recent trade and industrial measures have raised concerns among other WTO members, urging New Delhi to comply with its global trade commitments and rectify the alleged violations promptly.
The dispute marks another flashpoint in the increasingly competitive race between the two Asian economies for leadership in the global green technology and electric mobility sectors.
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