The Chinese Commerce Ministry announced on Friday it has filed a case with the World Trade Organization (WTO) against certain Indian tariffs and subsidies, saying they give Indian domestic industries an “unfair competitive advantage” and “harm Chinese interests.”
“We once again urge India to abide by its relevant commitments at the WTO and immediately correct its erroneous practices,” the Chinese Commerce Ministry said.
China’s complaint pertains to Indian tariffs on information and communications technology, and subsidies for photovoltaic products. China filed a similar petition with the WTO in October against Indian subsidies for electric vehicles (EVs) and batteries.
WTO rules make some allowances for subsidies, but they stipulate that such subsidies cannot create a grossly unfair advantage for domestic industries over foreign competitors.
China specifically complained that India is using “import substitution subsidies,” which strongly incentivize local manufacturers to use domestic products instead of imports, by excessively raising the price of the imports and using subsidies to make the domestic alternatives unreasonably cheap.
China’s WTO complaint comes after India made some efforts to alleviate trade friction, such as relaxing its visa rules for visiting Chinese professionals. The Indian government had not publicly responded to China’s complaint as of Friday afternoon.
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