China has formally requested consultations with India at the World Trade Organization on December 19, 2025, challenging India's tariffs on certain information and communications technology (ICT) products and subsidy measures related to photovoltaic manufacturing. Beijing alleges these policies violate WTO rules by exceeding bound tariff commitments, breaching the principle of national treatment, and constituting prohibited import-substitution subsidies that unfairly favor domestic Indian producers over foreign suppliers, including Chinese firms dominant in telecom hardware and solar components.

The Chinese Ministry of Commerce described the move as a "firm step" to protect its industries' legitimate interests, urging India to "immediately correct its wrong practices" and comply with multilateral trade obligations. The complaint highlights how India's measures grant domestic industries competitive advantages, harming Chinese exports amid a projected bilateral trade deficit exceeding $100 billion in 2025.

This marks China's second WTO dispute against India in recent months, following an October 2025 challenge to subsidies under Production Linked Incentive (PLI) schemes for electric vehicles, batteries, and auto components. The consultations phase allows up to 60 days for bilateral talks; failure to resolve could lead China to request a formal dispute settlement panel.

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The action underscores escalating trade tensions as India advances its 'Make in India' initiative through higher tariffs and incentives to boost self-reliance in strategic sectors like renewables and telecommunications. While no immediate response from Indian authorities was reported, the case adds to ongoing frictions in global supply chains where China holds significant market share.

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