China Challenges India's EV Production Schemes at WTO

China has lodged a formal complaint with the World Trade Organization (WTO), contesting India's Production Linked Incentive schemes for electric vehicles and advanced chemistry cell batteries. Beijing asserts that these schemes breach international trade rules by favoring domestic products over imports, thus discriminating against Chinese goods.

The Chinese government has sought consultations with India under the WTO's dispute settlement mechanism. China's complaint highlights three specific programs: the Production Linked Incentive Scheme for Automobile and Auto Component Industry, the National Programme on Advanced Chemistry Cell (ACC) Battery Storage, and the Scheme to Promote Manufacturing of Electric Passenger Cars in India.

The dispute arises amidst China's attempt to bolster its electric vehicle exports to India, a key market with significant growth potential. With a 51% increase in overseas EV exports over the past year, Chinese automakers face challenges, including a 27% EU tariff on Chinese electric vehicles.