Photovoltaic and IT Trade Dispute: China Files Complaint with WTO Against India's Discriminatory Measures
AFP, Geneva report: The World Trade Organization (WTO) announced on Tuesday, December 23, that China has formally filed a dispute settlement request with the WTO regarding certain measures taken by India in the trade of photovoltaic (solar) products and information technology (IT) products.
According to the WTO, Beijing has raised objections to certain subsidies given to the photovoltaic industry by India, as well as tariffs imposed by India on products such as mobile phones and flat panel display manufacturing equipment.
The WTO detailed, "China clearly pointed out that the measures in question include India's tariff treatment and other certain measures. China believes these measures, which are conditional upon the use of domestic products, constitute discrimination against imported Chinese products."
In the consultation request submitted to WTO members on Tuesday, China claimed that these measures violate multiple provisions of the General Agreement on Tariffs and Trade (GATT) 1994, the Agreement on Subsidies and Countervailing Measures, and the Agreement on Trade-Related Investment Measures.
AFP noted that submitting a consultation request is the formal starting point of the WTO dispute settlement procedure. Consultations provide the parties an opportunity to discuss issues and seek solutions without directly entering the judicial process. If the dispute remains unresolved after 60 days, the complainant may request the WTO to establish a panel for review.
The trade disputes between China and India in the photovoltaic (solar) sector have not been sudden but have gradually intensified as India has vigorously promoted its "energy transition" and "Made in India" initiatives in recent years.
China currently has the most complete and lowest-cost photovoltaic supply chain in the world (accounting for about 80% of global capacity). In order to achieve energy independence and promote the "Atmanirbhar Bharat" (Self-Reliant India) policy, India has attempted to reduce its reliance on Chinese products through administrative means.
It is understood that the "discriminatory measures" mentioned by China in the complaint mainly focus on the following points:
Basic Customs Duty (BCD): Since April 2022, India has imposed a 40% tariff on imported solar modules and a 25% tariff on solar cells. This directly increases the cost of Chinese products entering India.
ALMM List (Non-Tariff Barriers): India has established an "Approved Model and Manufacturer List" (ALMM). Only manufacturers on this list can participate in government subsidy programs. In recent years, Chinese companies have found it difficult to enter this list, which is seen as a de facto access restriction.
Production-Linked Incentive (PLI) Scheme: The Indian government has allocated billions of dollars in subsidies to domestic companies (such as Reliance Industries and Adani) to encourage them to build vertically integrated photovoltaic factories domestically.
This lawsuit marks the formal escalation of Sino-Indian trade friction from bilateral bargaining to a multilateral judicial process. Although WTO rulings usually take several years, this indicates that China has begun to use rules to counter India's increasingly severe trade protectionism in recent years.
Source: rfi
Original: toutiao.com/article/1852310718056586/
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