China Accuses India Of Violating WTO Rules On Electric Vehicle Subsidies

17/10/2025 10:11 - 79 Views

The Chinese government has officially submitted an objection to the World Trade Organization (WTO) on India's subsidy policy aimed at electric vehicles (EVs) and battery cell production. This step was taken because China considered the country's support to violate international trade rules.

The Chinese claim states that the PM E-Drive program and Production Linked Incentive (PLI) incentives in India provide discriminatory treatment for foreign producers. The PM E-Drive program, launched in 2024, provides subsidies and tax incentives to manufacturers and suppliers who build EVs and their components in India.

Meanwhile, the PLI scheme that has been running since 2020 provides additional incentives to producers based on production volume and component locality in India. As reported by NDTV, Friday, October 17.

China also stated that this support has the potential to become an import-substitution of subsidies, namely a subsidy that encourages the use of domestic products compared to imported goods, something that is prohibited by the national treatment clause in the WTO regulation.

Source: VOI