China Files WTO Complaint Against India Over EV, Battery Subsidies
China files WTO complaint over India’s EV subsidies amid rising trade tensions and rare earth mineral push
New Delhi: China on Wednesday filed a complaint with the World Trade Organisation (WTO) over India’s subsidies in the electric vehicles (EVs) and battery manufacturing sectors, alleging that the incentives give domestic industries an unfair competitive advantage, citing the Chinese commerce ministry. However, India said that it would soon look into the detailed submission made by China.
China’s complaint to the WTO comes at a time when India is learnt to have launched a National Critical Mineral Stockpile (NCMS) programme, which aims to ensure the sufficient availability of rare earth elements in the country and promote the expansion of domestic rare earth mineral production as well.
As the rare earth minerals are essential for the production of electric vehicles, wind turbines and other green energy technology developments, India’s proposed move may potentially turn out in India’s favour after China’s decision to impose restrictions on the export of these elements.
As per the Chinese commerce ministry’s statement, China has filed a complaint against India in the WTO over New Delhi’s subsidies for EVs and batteries. “China will take “firm measures” to effectively safeguard the legitimate rights and interests of its domestic industries,” the Chinese commerce ministry said.
Reacting to the Chinese commerce ministry's statement, India's commerce secretary Rajesh Agrawal confirmed China's move, saying that the commerce ministry will soon look at the detailed submissions made by China. Besides India, China has also filed similar applications against nations like Turkiye, Canada and the EU. They have sought consultations with India,” the secretary said.
Seeking consultation is the first step of the dispute settlement process as per WTO rules. If the consultations requested with India do not result in a satisfactory solution, the EU can request that the WTO set up a panel in the case to rule on the issue raised.
China is the second-largest trading partner of India. In the last fiscal, the latest data showed that India’s exports to China contracted 14.5 per cent to $14.25 billion against $16.66 billion in 2023-24. The imports, however, rose by 11.52 per cent in 2024-25 to $113.45 billion against $101.73 billion in 2023-24. India’s trade deficit with China has widened to $99.2 billion during 2024-25.
