India Blocks China's WTO Dispute Panel Request Over Auto Incentive Schemes

India has rejected China's request to set up a WTO dispute panel regarding incentive schemes for auto and electric vehicles. China claims India's PLI schemes violate trade rules, but India blocked their request, emphasizing ongoing tensions in trade relations between the two major economies.

India has firmly rejected China's request to establish a dispute panel at the World Trade Organization (WTO) over accusations related to India's incentive schemes for automobiles and electric vehicles. A Geneva-based official confirmed that at a recent meeting, India blocked China's attempt at setting up the panel.

China initiated this request after bilateral discussions in late 2025 and early 2026 failed to resolve the dispute. Beijing contends that elements of India's Production Linked Incentive (PLI) schemes for advanced chemistry cell batteries and automobiles allegedly breach global trade regulations by discriminating against Chinese products.

The disagreement highlights ongoing trade tensions between the neighbors, who are both key members of the WTO. Trade between the two nations remains significant, with China being India's second-largest trading partner despite a growing trade deficit, which reached USD 99.2 billion in 2024-25.

(With inputs from agencies.)