China Seeks WTO Panel Against India Over Solar and Technology Sector
Incentives
China has alleged that India's tariff or
import duty on certain technology products, and measures like use of domestic
products over imported goods, discriminate against Chinese goods.
·
China has requested the World Trade Organization
(WTO) dispute settlement body to establish a panel against India over support
measures for solar cells, modules and information technology sectors.
·
The request comes after bilateral consultations
between the two countries failed to resolve the dispute.
Key
Details
·
China had filed the dispute at the WTO in December
2025.
·
Bilateral consultations were held on February 10,
2026, but no mutually agreed solution was reached.
·
China has now formally sought the establishment of
a WTO dispute panel.
China’s
Allegations
China
alleges that India’s measures:
·
Impose discriminatory tariffs or import duties on
certain technology products.
·
Promote the use of domestic goods over imported
products.
·
Adversely affect Chinese exports in the solar and
technology sectors.
WTO
Agreements Allegedly Violated
China
claims that India’s measures violate provisions under:
·
WTO General Agreement on Tariffs and Trade (GATT)
1994
·
Agreement on Subsidies and Countervailing Measures
·
Agreement on Trade-Related Investment Measures
(TRIMS)
WTO
Dispute Settlement Process
·
Consultations are the first stage under WTO dispute
settlement rules.
·
Since consultations failed, China can now seek a
WTO panel to adjudicate the matter.
Earlier
WTO Dispute
·
In January 2026, China also requested a WTO panel
against India over incentive schemes related to:
o
Automobiles
o
Batteries
o
Electric vehicles (EVs)
India-China
Trade Trends
·
China remains India’s second-largest trading
partner.
·
India’s exports to China increased 36.66% to USD
19.47 billion in 2025-26.
·
Imports from China rose 16% to USD 131.63 billion.
·
India’s trade deficit with China widened to a
record USD 112.6 billion in 2025-26, compared to USD 99.2 billion in 2024-25.
China
has requested the WTO's dispute settlement body to set up a panel in a case it has
filed against India over New Delhi's support measures for the solar cells, modules
and information technology sectors.
The
request follows failure of bilateral consultations on reaching a mutually agreed
solution on the dispute filled by China in December last year.
The
consultations were held on February 10, 2026 with a view to reaching a mutually
agreed solution.
"Unfortunately,
those consultations failed to resolve the dispute. Accordingly, China submits the...request
for the establishment of a panel," a communication of the World Trade Organization
(WTO) said.
China
has alleged that India's tariff or import duty on certain technology products, and
measures like use of domestic products over imported goods, discriminate against
Chinese goods.
Beijing,
which is a major exporter of goods under these sectors, had claimed that these support
measures and incentives infringe rules pertaining to WTO's General Agreement on
Tariffs and Trade 1994, Agreement on Subsidies and Countervailing Measures, and
Agreement on Trade-Related Investment Measures.
Seeking
consultation is the first step of the dispute settlement process as per WTO rules.
If
the consultations requested with India do not result in a satisfactory
solution, China can request the WTO to set up a panel in the case to rule on
the issue raised.
China
is the second-largest trading partner of India.
In
January also, China requested the WTO's dispute settlement body to set up a panel
in another case it has filed against India over New Delhi's incentive schemes for
auto, battery and electric vehicles after bilateral consultations failed to resolve
the dispute.
India’s
exports to China rose 36.66 per cent to USD 19.47 billion during the last fiscal
year, while imports increased 16 per cent to USD 131.63 billion. The trade
deficit swelled to an all-time high of USD 112.6 billion in 2025-26 as against
USD 99.2 billion in 2024-25.