China escalated trade tensions with India on Friday, December 19, 2025, by submitting a formal request for consultations at the World Trade Organization (WTO). The complaint targets India's tariffs on information and communications technology (ICT) products and subsidies in the photovoltaic (solar) sector, alleging violations of multiple WTO rules.
A spokesperson for China's Ministry of Commerce (MOFCOM) announced the move during a regular press briefing, stating: "On December 19, China submitted a request for consultations to India at the WTO regarding India's tariff measures on information and communication products and photovoltaic subsidy measures." The ministry accused India's policies of breaching bound tariff commitments, the national treatment principle (which requires equal treatment of domestic and imported goods), and prohibitions on import substitution subsidies under WTO agreements.
"These measures give India's domestic industries an unfair competitive advantage and harm China's interests," the spokesperson added, describing the filing as a "firm step" to protect Chinese industries' legitimate rights. China urged India to "abide by its relevant commitments at the WTO and immediately correct its erroneous practices."
The dispute centers on India's efforts to boost domestic manufacturing through initiatives like Production-Linked Incentives (PLI) schemes and tariffs aimed at reducing reliance on imports, particularly from China, which dominates global supply chains for solar panels and telecom equipment. Critics in Beijing argue these create discriminatory barriers, distorting competition and favoring local producers.
This marks China's second WTO challenge against India in 2025. In October, Beijing filed a similar complaint over subsidies for electric vehicles (EVs) and batteries, claiming they undermine Chinese exporters in those markets.
WTO consultations represent the initial phase of dispute settlement, allowing 60 days for bilateral talks. If unresolved, China could request a panel to adjudicate, potentially leading to authorized retaliatory measures.
India has not issued an official response yet, but past defenses emphasize that such policies comply with WTO rules by promoting self-reliance without prohibiting imports outright. New Delhi has countered similar complaints by highlighting national security and development needs.
The filings reflect deepening trade frictions between the world's two most populous nations, despite recent diplomatic thaw—including eased visa rules for Chinese professionals. Bilateral trade exceeds $100 billion annually, but imbalances favor China, prompting India's protective measures in strategic sectors like renewables and technology.
Analysts note China's proactive use of WTO mechanisms amid global trade wars, having filed against the U.S. and EU on other issues. For India, repeated challenges could strain its "Make in India" and green energy ambitions, though WTO outcomes often take years.
As renewable energy and tech supply chains gain geopolitical importance, this case underscores rivalries in emerging industries. Resolution through talks remains possible, but escalation risks broader implications for multilateral trade norms.
