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China Seeks WTO Consultations With India Over EV and Battery Subsidies

Beijing alleges the incentives violate WTO national treatment, constituting prohibited import‑substitution subsidies.

Overview

  • India’s commerce ministry will review China’s detailed submissions after the request for consultations, Commerce Secretary Rajesh Agrawal said.
  • China’s complaint targets measures to expand local EV and battery manufacturing, including India’s EV policy and the production‑linked incentive scheme.
  • Under WTO rules the dispute starts with consultations, and either party can ask for a panel ruling if talks do not resolve the issues.
  • Beijing filed similar WTO actions against Türkiye, Canada and the European Union and said it will take “firm measures” to safeguard domestic industries.
  • Context includes a surge in Chinese auto exports and pushback abroad, with CPCA citing 2.01 million EV and plug‑in hybrid exports in the first eight months and the EU applying a 27% tariff, while India’s 2024–25 goods deficit with China reached $99.2 billion.