China Seeks WTO Talks with India Over Trade Measures
China has requested consultations with India at the World Trade Organization over New Delhi’s tariffs on information and communication technology products and subsidy schemes in the solar energy sector. The move marks the first step in a formal dispute process under WTO rules and reflects rising trade friction between the two Asian economies.
Issues raised by China
In its request, China has questioned India’s import duties on ICT products such as electronic components and telecommunications equipment. Beijing has also raised concerns over India’s incentives and subsidies for domestic solar manufacturing, arguing that these measures distort global trade and disadvantage foreign suppliers. According to China, some of the support mechanisms encourage the use of local products over imports, which it claims is inconsistent with WTO commitments.
Consultation process and possible escalation
Under WTO procedures, both sides will now have up to 60 days to hold consultations and attempt to resolve the dispute through dialogue. If the talks fail to produce a settlement, China can seek the establishment of a dispute settlement panel to examine the case and issue findings.
Broader trade context
India has defended its trade and industrial policies as necessary to strengthen domestic manufacturing and reduce dependence on imports, particularly in strategic sectors such as electronics and renewable energy. The consultation request adds to a series of trade disagreements between the two countries, even as they remain significant trading partners in the region.
