China Launches Trade Dispute Against India over Solar Cells and IT Goods

• China has launched a trade dispute with India over solar cells, solar modules and information technology (IT) goods, requesting dispute consultations on the matter, the World Trade Organisation (WTO) said on Tuesday, December 23, 2025. China had claimed that these support measures and incentives infringe rules pertaining to the WTO's General Agreement on Tariffs and Trade 1994, Agreement on Subsidies and Countervailing Measures, and Agreement on Trade-Related Investment Measures.
• It has also raised issues over the conditions that govern the eligibility for, and disbursement of incentives under, the Production Linked Incentive Scheme: National Programme on High Efficiency Solar PV Modules. The incentives provided under the Solar Module Programme are conditioned on several criteria, including a prescribed minimum local value addition requirement. India has taken these measures to boost domestic manufacturing and reduce dependence on imported goods.
• 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, the EU can request that the WTO set up a panel in the case to rule on the issue raised. This came less than a week after India imposed anti-dumping duties on cold-rolled steel imports from China for five years to protect its domestic industry.
• China is the second-largest trading partner of India. In the last fiscal year, India's exports to China contracted 14.5 per cent to US$14.25Bn against US$16.66Bn in 2023-2024. The imports, however, rose by 11.52% to US$113.45Bn from US$101.73Bn. India's trade deficit with China widened to US$99.2Bn during 2024-25.

(Sources: Reuters & The Economic Times)