BEIJING, October 15, 2025 — China has lodged a formal complaint with the World Trade Organization (WTO) against India, alleging that New Delhi’s subsidies for electric vehicles (EVs) and batteries unfairly favour domestic manufacturers and harm Chinese industry interests.

In a statement issued on Wednesday, China’s Ministry of Commerce said the subsidy schemes distort competition by giving Indian firms an advantage over foreign producers. The ministry added that Beijing would take “firm measures” to safeguard the legitimate rights and interests of Chinese companies affected by India’s policies.

The WTO filing escalates trade tensions between Asia’s two largest economies, which have increasingly clashed over technology, clean energy, and manufacturing policy.

India has rolled out several major initiatives — including its FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) program and the Production-Linked Incentive (PLI) scheme for advanced chemistry cell batteries — to boost local EV production and reduce reliance on imports.

China, home to many of the world’s leading EV and battery makers such as BYD and CATL, argues that these incentives act as trade barriers by excluding or disadvantaging Chinese suppliers.

If accepted by the WTO, the complaint could trigger a formal dispute settlement process, requiring consultations between Beijing and New Delhi and potentially leading to panel hearings if no resolution is reached.

The case underscores growing global scrutiny of green industrial policies, as nations race to dominate next-generation manufacturing sectors like electric mobility and renewable energy storage.