KATHMANDU: China has requested consultations with India at the World Trade Organization (WTO) over India’s subsidy programs for electric vehicles and batteries, the Chinese Ministry of Commerce said on Wednesday.
According to the ministry, India’s measures allegedly violate WTO obligations, including the national treatment principle, and amount to import substitution subsidies, which are prohibited under global trade rules.
A ministry spokesperson said these policies give unfair advantages to Indian manufacturers and harm China’s legitimate interests.
“China will take resolute steps to safeguard the lawful rights and interests of its domestic industries,” the spokesperson said. The ministry also claimed that several of India’s trade measures have raised concerns among WTO members and urged New Delhi to comply with its commitments.
An Indian official confirmed the development, saying, “They have sought consultations with India,” adding that the government will respond as per WTO procedures.
Commerce Secretary Rajesh Agrawal said the ministry will review China’s submissions before deciding the next course of action, according to The Economic Times.
The dispute comes as China aims to expand electric vehicle exports to India, at a time when both countries are trying to rebuild diplomatic ties after years of limited engagement.
India’s EV and battery subsidy programs are a key part of its strategy to strengthen local manufacturing and reduce dependence on imports in sectors such as clean mobility, semiconductors, and renewable energy.
