International RelationsEconomy & Finance
China Files WTO Complaint Against India's EV and Battery Subsidies
China has filed a complaint against India at the World Trade Organization (WTO) over New Delhi's subsidies for electric vehicles (EVs) and batteries. This marks the first step in the dispute settlement process. China has also filed similar applications against Turkiye, Canada, and the EU. The move comes amid a widening trade deficit between the two nations, which reached $99.2 billion in 2024-25. While India's exports to China contracted by 14.5%, imports from China rose by over 11%, highlighting significant trade imbalances.
Key Points
- China is challenging India's domestic subsidy regime for the green energy sector under WTO rules.
- The complaint follows similar Chinese actions against other major trading partners like the EU and Canada.
- India's trade deficit with China has reached nearly $100 billion, driven by rising imports.
Exam Facts
- Trade Deficit: $99.2 billion with China in the 2024-25 fiscal year.
- Import Growth: Imports from China rose to $113.45 billion in 2024-25.
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