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Beijing alleges India’s manufacturing incentives discriminate against Chinese goods.

China Moves WTO Against India’s PLI Schemes and Import Duties.                                                                                                                                                                                                   

China has challenged India’s Production Linked Incentive (PLI) schemes and import duties at the World Trade Organization (WTO), alleging that they unfairly discriminate against Chinese products. Beijing has sought formal consultations with New Delhi, the first step in the WTO’s dispute settlement process, according to trade officials. The request was filed on December 19 and circulated among WTO members on December 23. The dispute targets India’s manufacturing incentives and tariff measures covering photovoltaic solar cells and modules, smartphones, semiconductors, and related machinery. China argues that the PLI schemes link incentives to the use of domestically produced inputs, effectively disadvantaging imported goods and violating global trade rules. It has also objected to India’s import duties and the Agriculture Infrastructure and Development Cess on electronics and semiconductor manufacturing equipment. The measures are part of India’s broader push to strengthen domestic manufacturing in electronics and renewable energy. If consultations fail, China may seek the formation of a WTO dispute panel to adjudicate the matter.