China-India Trade Tensions: WTO Dispute Brews Over Solar and IT Sectors

China has escalated its trade dispute with India to the WTO, seeking a panel over India's solar and IT industry policies. Beijing claims India's measures violate WTO agreements, alleging discrimination against Chinese products. This follows unsuccessful bilateral talks and reflects deepening trade tensions between the two economic giants.

China has intensified its trade dispute with India by requesting the World Trade Organization (WTO) to establish a panel concerning New Delhi's support measures for the solar and information technology sectors. This escalation follows unsuccessful bilateral talks aimed at reaching an amicable solution, initiated after China filed the complaint last December.

Beijing accuses India of imposing tariffs and import duties on certain tech products that preferentially support domestic over Chinese goods. This, according to China, contravenes several WTO agreements, including those on tariffs, subsidies, and investment measures. Both nations had earlier conducted consultations in February 2026, yet failed to reach consensus, prompting China to proceed with the panel request.

This request marks the continuation of trade friction between the Asian giants. Recently in January, China had also sought a WTO panel regarding India's incentive schemes for the auto sector. As trade between the nations burgeons—India's exports to China soared by nearly 37% last fiscal year—the trade deficit has also widened, hitting a record high in 2025-26.