(MENAFN- KNN India) New Delhi, Oct 16 (KNN) China has filed a formal complaint against India at the World Trade Organisation (WTO), alleging that India's electric vehicle (EV) subsidy programs violate global trade rules.

The move comes as Beijing accuses New Delhi of adopting policies that unfairly favour local manufacturers under the guise of promoting domestic production.

According to China's submission, India's Production-Linked Incentive (PLI) scheme for advanced chemistry cell batteries and EV manufacturing discriminates against foreign firms, amounting to prohibited“import-substitution subsidies” under WTO norms.

The formal complaint marks the consultation stage - the first step before a potential full-fledged trade dispute.

Beijing's concerns are rooted in India's growing push for self-reliance through industrial policies that closely resemble China's own economic model from past decades.

These include heavy government incentives, domestic sourcing mandates, and protection of local industries to boost capacity and reduce import dependence.

Analysts see China's WTO challenge as a reflection of both trade tensions and strategic rivalry. India has been seeking to position itself as a global EV manufacturing hub by offering subsidies and policy support to companies setting up local plants.

Meanwhile, Chinese EV and battery manufacturers face increasing restrictions and scrutiny in India due to security and supply chain concerns.

The dispute highlights the shifting balance of industrial competition between the two Asian giants. While India's PLI scheme aims to attract global investment and strengthen its manufacturing base, China's reaction indicates unease with India adopting its own“playbook” for industrial expansion. The WTO process, however, may take months before any resolution is reached.

(KNN Bureau)

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