China files WTO complaint against India over EV subsidies

China has lodged a formal complaint with the World Trade Organisation (WTO), alleging that India’s subsidies for electric vehicles (EVs) and batteries breach global trade norms.

In a statement, China’s Commerce Ministry claimed that India’s policies violate multiple WTO commitments, including the principle of national treatment, and amount to import substitution subsidies—explicitly prohibited under international trade rules. The ministry argued that these incentives give undue advantage to domestic manufacturers while harming China’s legitimate trade interests.

The complaint comes as Beijing seeks to expand its EV exports to India, following recent diplomatic efforts to ease tensions after a five-year freeze in relations triggered by the Eastern Ladakh border standoff. With India’s rapidly growing auto market, Chinese EV makers view it as a crucial destination to offset declining domestic demand.

Reports suggest that due to excess production, falling profits, and fierce price competition at home, Chinese automakers such as BYD are increasingly turning to international markets—particularly in Europe and Asia—for growth opportunities.

Commenting on the matter, India’s Commerce Secretary Rajesh Agrawal said that the ministry would review China’s detailed submissions before formulating a response.