Archive · 20 Jan 2026
China Challenges India's EV Incentives at WTO
China is upset with India's special programs that help make electric cars and batteries in India.
China says these programs are unfair because they favor Indian products over Chinese ones.
They talked to India about this, but couldn't agree, so China asked the World Trade Organization (WTO) to help decide.
India's programs are meant to make more electric cars and batteries in India, but China thinks this hurts their businesses.
Both countries are important trading partners, but India buys much more from China than the other way around.
China has requested a WTO panel to examine India's EV and auto incentive schemes after bilateral consultations failed.
China alleges that India's PLI schemes and EV policies discriminate against Chinese goods and violate WTO rules.
India's schemes include the PLI ACC scheme for battery storage and PLI for automobile and auto components.
India's trade deficit with China widened to USD 99.2 billion in 2024-25.
China is pushing to export more EVs, facing tariffs in the EU and potential barriers in India.
- Who
- China and India
- What
- China has filed a WTO complaint against India's EV and auto incentive schemes
- When
- Consultations held on November 25, 2025 and January 6, 2026; WTO panel requested on January 16, 2026
- Where
- World Trade Organization (WTO)
- Why
- China alleges that India's schemes discriminate against Chinese goods and violate global trade rules
- Complainant
- China
- Respondent
- India
- Dispute Subject
- India's EV and auto incentive schemes
- Consultation Dates
- November 25, 2025 and January 6, 2026
- WTO Panel Request Date
- January 16, 2026
- India's EV Policy Outlay
- Rs 18,100 crore
- India's Auto PLI Budget
- Rs 25,938 crore
- India-China Trade Deficit (2024-25)
- USD 99.2 billion
