Overview
- At a WTO Dispute Settlement Body meeting on January 27, India refused China’s bid to establish a panel, halting immediate adjudication of the complaint.
- China sought a panel after consultations on November 25, 2025 and January 6, 2026 did not resolve differences.
- Beijing alleges that conditions in India’s Production Linked Incentive schemes for advanced batteries, automobiles and electric vehicles discriminate against Chinese goods and breach WTO obligations.
- India says it engaged in good faith during the consultations and contends that China’s case reflects an inaccurate understanding of the facts.
- Wider trade tensions frame the dispute as India’s 2024–25 exports to China fell to USD 14.25 billion while imports rose to USD 113.45 billion, pushing the deficit to USD 99.2 billion.