China Seeks WTO Consultations With India Over ICT Tariffs and Solar Subsidies – EQ
In Short : China has requested formal consultations with India at the World Trade Organization, challenging India’s tariffs on information and communication technology products and subsidy support for the solar sector. China claims these measures violate WTO rules and unfairly favour domestic industries. The move initiates dispute settlement talks and signals rising trade friction between the two countries.
In Detail : China has initiated dispute settlement proceedings at the World Trade Organization by seeking consultations with India over its tariffs on information and communication technology products and policy support measures for the solar manufacturing sector. This marks a significant development in trade relations between the two Asian economies.
The request argues that India’s tariff structure on certain ICT products exceeds its commitments under multilateral trade rules. China maintains that such tariffs restrict market access and undermine the principle of predictable and transparent trade obligations.
In addition to tariffs, China has raised concerns over India’s subsidy framework for solar manufacturing. It alleges that specific incentives are structured in a way that encourages the use of domestically produced goods over imported alternatives.
According to the claims, these measures create an uneven playing field by providing Indian manufacturers with advantages that are not available to foreign suppliers. China argues this distorts competition and adversely affects its exports.
The WTO consultation process represents the first formal stage of dispute resolution. It allows both parties to engage in dialogue and attempt to resolve differences through negotiation before escalating the matter to a dispute panel.
This case reflects broader global tensions surrounding industrial policy, as countries increasingly use tariffs and subsidies to strengthen domestic manufacturing in strategic sectors such as technology and renewable energy.
For India, the challenged measures are part of a wider strategy aimed at boosting self-reliance, expanding local manufacturing capacity, and reducing dependence on imports in critical industries.
Trade experts note that such disputes highlight the balance governments must strike between promoting domestic industries and complying with international trade commitments.
The outcome of the consultations will determine whether the issue is resolved amicably or advances to formal adjudication, potentially shaping future trade policies and influencing bilateral economic relations between India and China.
