WTO has formed a dispute panel to examine China's complaint against India's solar incentives and IT tariffs, marking a significant escalation in trade tensions between the two Asian economies.
June 25, 2026. By EI News Network
The World Trade Organization (WTO) has agreed to establish a dispute settlement panel to examine China's complaint against India over tariffs and incentive measures affecting solar energy products and information technology (IT) goods. The decision came after China submitted a second request for a panel, which cannot be blocked under WTO rules. 
China alleges that India's import duties on certain technology products and incentive schemes for solar manufacturing discriminate against Chinese goods and are inconsistent with New Delhi's commitments under WTO agreements. Beijing argues that some of India's support measures favor domestically produced inputs over imported products, thereby distorting competition and global supply chains. 
India had previously blocked China's first request for a dispute panel in May 2026, as permitted under WTO procedures. However, after bilateral consultations failed to resolve the dispute, China's renewed request was accepted by the WTO's Dispute Settlement Body during its latest meeting in Geneva. 
The panel will now assess whether India's tariffs on selected high-tech imports and its solar-sector incentive measures comply with WTO rules. China contends that the measures violate provisions of the General Agreement on Tariffs and Trade (GATT), the Agreement on Subsidies and Countervailing Measures, and the Agreement on Trade-Related Investment Measures (TRIMs). 
The case adds to a growing number of trade disputes between the two countries and comes amid broader scrutiny of industrial policies and domestic manufacturing support programs in strategic sectors such as renewable energy and technology. 

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