NEW DELHI: (Oct 21) China has filed a formal complaint at the World Trade Organization (WTO), alleging that India’s Production Linked Incentive (PLI) schemes for the automobile, electric vehicle (EV), and advanced chemistry cell battery sectors breach global trade rules.
According to a WTO communication from Geneva, Beijing has sought consultations with New Delhi under the trade body’s dispute settlement mechanism — the first step before a possible panel investigation.
China claims that India’s PLI measures and EV manufacturing policies are “inconsistent with WTO obligations” because they favour domestic products over imports and discriminate against Chinese-origin goods.
The PLI scheme, launched by India to promote domestic manufacturing and reduce import dependence, provides financial incentives to companies producing locally. The government argues the policy is essential to boost competitiveness, attract investment, and support green mobility.
This is the latest trade friction between the two neighbours, whose economic relations have been strained since the 2020 border clashes. India has restricted Chinese investments and banned several apps citing national security, while China has repeatedly raised concerns at global forums about what it calls India’s “discriminatory” industrial policies.