China Files WTO Case Against India Over Solar Subsidies, ICT Tariffs

China has escalated trade tensions with India by filing a case at the World Trade Organisation (WTO), challenging its tariff regime on information and communication technology (ICT) products and subsidies extended to the solar sector.

In a statement released by China’s Ministry of Commerce, it alleged that India’s measures violate multiple WTO obligations, including the national treatment principle, and involve import-substitution subsidies, which are explicitly prohibited under WTO rules.

The Ministry argued that India’s solar-linked incentives unfairly favour domestic manufacturers, distorting competition and adversely impacting Chinese exporters. “These measures provide competitive advantages to India’s domestic industries at the expense of China’s, thereby violating WTO commitments,” a spokesperson said.

China has urged India to comply with its WTO obligations and make swift policy corrections.

It may be noted that this marks China’s second WTO filing against India in 2025, signaling rising friction around clean energy policies. In October, Beijing lodged a similar complaint targeting India’s subsidy schemes for electric vehicles and battery manufacturing, claiming they undermined Chinese commercial interests in the fast-growing energy transition market.

The latest move reveals growing global scrutiny over localisation-linked incentives in renewable energy, as countries race to build domestic solar manufacturing capacity while navigating international trade rules.

China has frequently approached the WTO in the past to contest what it views as discriminatory trade practices, including cases against the United States over steel and aluminium tariffs and against the European Union over anti-dumping duties, highlighting its continued reliance on multilateral dispute mechanisms to safeguard its renewable and industrial export interests.