China has filed a formal complaint against India at the World Trade Organization, or WTO. Beijing has alleged that India’s flagship production linked incentive (PLI) schemes for the auto and electric vehicle (EV) sectors violate global trade rules.
The complaint specifically targets three Indian programs. These include the PLI for Advanced Chemistry Cell (ACC) Battery Storage and the PLI Scheme for Automobile and Auto Components. It also names a policy promoting EV passenger car manufacturing.
The measures allegedly favour domestic production over imports. China claims they discriminate against Chinese-origin goods. Beijing argues this breaches India’s obligations under WTO agreements, including the SCM (Subsidies and Countervailing Measures) Agreement.
The request initiates the first step in the WTO’s dispute settlement mechanism: consultations. China has sought a mutually convenient date to discuss the matter with India. If talks fail, China can ask the WTO to form a dispute panel. China’s move comes as its own EV makers look to expand exports into the large Indian market, especially with regulatory pushback in other regions like the European Union.
