Overview
- The WTO Dispute Settlement Body on February 24 agreed at China’s second request to establish a panel examining Indian measures in the automotive and renewable energy technology sectors.
- Beijing’s complaint targets Production Linked Incentive programmes for advanced chemistry cell batteries, automobiles, auto components and electric passenger cars, alleging discriminatory domestic content and value-add requirements.
- India told members it engaged in consultations in good faith and maintains the measures comply with WTO obligations and do not harm China’s trade interests.
- Consultations on November 25, 2025 and January 6, 2026 failed to produce a solution, and India had blocked China’s first panel request at the January 27 DSB meeting.
- Multiple members, including the US, EU, Japan, Korea, UK, Canada, Russia and Singapore, reserved third‑party rights, with the US criticizing China’s move, and any appeal of the panel’s eventual ruling faces uncertainty given the non‑functional Appellate Body.