China Takes Action Against India at WTO Over Solar and IT Support Measures

In a significant move, China has filed a complaint with the World Trade Organization (WTO) against India, challenging the country's support measures for the solar and information technology sectors. Allegations include discriminatory tariff treatments and policies favoring domestic goods. As the second-largest trading partner of India, this dispute could have far-reaching implications for bilateral trade relations. The complaint marks the beginning of a formal dispute resolution process, with China seeking consultations under WTO rules. If unresolved, China may escalate the matter to a WTO panel. This article delves into the details of the complaint and its potential impact on trade dynamics between the two nations.

By Narendra Chaudhary Dec 23, 2025, 22:28 IST

China's Complaint at the WTO

New Delhi: China has lodged a formal complaint with the World Trade Organization (WTO) regarding India's supportive measures for the solar and information technology industries.

The complaint alleges that India's tariff policies and import duties on specific technology products, along with measures favoring domestic goods over imports, unfairly disadvantage Chinese products.

As a significant exporter in these sectors, Beijing is keen to address these concerns.

In a communication to the WTO, China has requested consultations with India in accordance with the organization's dispute resolution protocols.

China asserts that India's support measures violate several WTO agreements, including the General Agreement on Tariffs and Trade 1994, the Agreement on Subsidies and Countervailing Measures, and the Agreement on Trade-Related Investment Measures.

"My authorities have instructed me to request consultations with the Government of India regarding the tariff treatment that India accords to certain technology products, and to certain measures adopted by India that are contingent upon the use of domestic over imported goods or that otherwise discriminate against goods of Chinese origin," the communication stated.

China claims that India's policies impact trade in the solar cell, solar module, and IT sectors.

Concerns have also been raised about the eligibility criteria and disbursement conditions under the Production Linked Incentive Scheme: National Programme on High Efficiency Solar PV Modules.

The incentives provided under the Solar Module Programme are contingent upon several criteria, including a minimum local value addition requirement.

India has implemented these measures to enhance domestic manufacturing capabilities and decrease reliance on imports.

Consultation requests mark the initial phase of the dispute resolution process as per WTO regulations.

Should these consultations fail to yield a satisfactory resolution, China may ask the WTO to establish a panel to adjudicate the matter.

China ranks as India's second-largest trading partner.

In the previous fiscal year, India's exports to China fell by 14.5% to USD 14.25 billion, down from USD 16.66 billion in 2023-24. Conversely, imports surged by 11.52% to USD 113.45 billion, up from USD 101.73 billion.

Consequently, India's trade deficit with China expanded to USD 99.2 billion during 2024-25.