India has stopped China's request for a new WTO dispute panel on Indian measures in the car and renewable energy industries, according to a Geneva-Based trade official on Tuesday.
Further details awited.
China has requested the WTO's dispute settlement body to set up a panel in a case it has filed against India over New Delhi's incentive schemes for auto, battery and electric vehicles after bilateral consultations failed to resolve the dispute.
In October last year, Beijing alleged that certain conditions in India's Production Linked Incentive (PLI) schemes for advanced chemistry cell batteries, automobiles and the policy to promote the manufacturing of electric vehicles violate global trade rules by discriminating against Chinese goods.
In a communication to the World Trade Organisation (WTO), China has stated that consultations were held on November 25, 2025, and January 6, 2026, with a view to reaching a mutually agreed solution.
Unfortunately, those consultations failed to resolve the dispute, it said.
"China therefore requests the Dispute Settlement Body to establish a panel to examine this matter," the communication dated January 16 said.
It has also asked that this request be placed on the agenda of the next meeting of the Dispute Settlement Body, currently scheduled to be held on January 27 in Geneva.
Seeking consultation is the first step of the dispute settlement process as per WTO rules. If the consultations requested by the complainant do not result in a satisfactory solution, it can request that the WTO set up a panel in the case to rule on the issue raised.
Beijing, in its complaint, has stated that measures adopted by India are contingent upon the use of domestic over imported goods and discriminate against goods of Chinese origin.
These measures appear to be inconsistent with India's obligations under the SCM (Subsidies and Countervailing Measures) Agreement, the GATT (General Agreement on Tariffs and Trade) 1994 and the TRIMs (Trade-Related Investment Measures) Agreement.
In its complaint, China has mentioned three programmes - Production Linked Incentive, National Programme on Advanced Chemistry Cell (ACC) Battery Storage, Production Linked Incentive Scheme for Automobile and Auto Component Industry, and Scheme to Promote Manufacturing of Electric Passenger Cars in India.
Both India and China are members of the World Trade Organisation (WTO). If a member country believes that a support measure under a policy or scheme of another member nation is harming its exports of certain goods, it can file a complaint under the dispute settlement mechanism of the WTO.
China is the second-largest trading partner of India.