China drags India to WTO: India and China will attempt to resolve the dispute through mutual consultations. If no solution is reached during these consultations, the matter could go to a dispute settlement panel.

Under the WTO process, India and China will now try to find a solution to this dispute through mutual consultation.

China has once again approached the World Trade Organization (WTO) against India. It has filed a petition with the WTO seeking formal consultations regarding customs duties imposed on information and communications technology (ICT) products and subsidies provided to the solar sector. The petition was filed on Friday.

Statement by China's Ministry of Commerce

A spokesperson for China's Ministry of Commerce said in a statement that these measures adopted by India violate several provisions of the WTO. It also alleged a violation of the principle of national treatment. China says that these measures by India fall under the category of import-substitution subsidies, which are expressly prohibited under WTO rules. According to the ministry, such measures create an uneven market for foreign companies by promoting domestic products.

China's Ministry of Commerce alleged that India's policies provide an unfair competitive advantage to domestic industries

, harming the interests of Chinese companies. In a statement, China urged India to respect its WTO obligations and revise these policies expeditiously. China contends that current measures are inconsistent with international trade rules.

India and China will now attempt

to resolve the dispute through consultations under the WTO process. If no solution is reached during consultations, the matter may go to a dispute settlement panel.

China tried to improve relations amid Trump tariffs.

When Donald Trump imposed heavy tariffs on China, Beijing strategically intensified its efforts to improve relations with India. China understood that in the event of a trade war with the US, it would need alternative partners in Asia, and India is a major market as well as a regional power. But now it is making diplomatic moves against India. This is the second time that India has complained about to the WTO twice in the last few months.

This is the second petition filed by China against India at the WTO this year

. Earlier in October, China filed a complaint against India over alleged unfair subsidies in the electric vehicle (EV) and battery sectors. In the previous petition, China alleged that India's subsidy policies related to the EV and battery sectors were affecting its trade interests. In that case, China also requested consultations with India at the WTO.