China has once again approached the World Trade Organization (WTO) against India. China has filed a petition in the WTO against India demanding formal consultation regarding customs duties imposed on Information and Communication Technology (ICT) products and subsidies being given to the solar sector. This petition was filed on Friday.
Statement from China’s Commerce Ministry
The spokesperson of China’s Commerce Ministry said in a statement that these measures adopted by India violate many provisions of WTO. It has also been accused of violating the principle of ‘national treatment’. China says that these steps of India fall in the category of import-substitution subsidies, which are clearly banned under WTO rules. According to the ministry, such measures create an unequal market for foreign companies by promoting domestic products.
Claim of giving unfair advantage to domestic industries
China’s Commerce Ministry alleged that India’s policies give unfair competitive advantages to its domestic industries, harming the interests of Chinese companies. In the statement, China has urged India to respect its WTO obligations and amend these policies soon. China says that the current measures are not in line with international trade rules.
Trying to find solution through consultation process
Under the WTO process, India and China will now try to find a solution to this dispute through mutual consultation. If no solution is found during consultation, the matter may go to a dispute resolution panel.
China tried to improve relations amid Trump tariffs
When Donald Trump imposed heavy tariffs on China, Beijing stepped up efforts to strategically improve relations with India. China was understanding that in case of a trade war with America, it would need alternative partners in Asia, and India is a big market as well as a regional power, but now it is making diplomatic moves with India. This is the second time that in the last few months he has complained about India twice in WTO.
Petition against India for the second time this year
This is the second petition filed by China in WTO against India this year. Earlier in the month of October also, China had filed a complaint against India regarding alleged unfair subsidies in the electric vehicle (EV) and battery sector. In the previous petition, China had alleged that India’s subsidy policies related to the EV and battery sector were affecting its business interests. In that matter also, China had sought consultation with India from WTO.
