China filed a WTO consultation request on December 19, 2025, targeting India’s solar PV subsidy schemes
It claims the measures breach WTO rules on tariffs, national treatment, and the ban on import substitution subsidies
China has urged India to correct the measures, citing harm to Chinese industry interests
China has officially launched a complaint with the World Trade Organization (WTO) against India’s solar PV subsidies. The Chinese Ministry of Commerce confirmed that on December 19, 2025, it submitted a request for consultation in the matter to the WTO.
It alleges that the Indian government’s support for the domestic PV industry in the form of subsidies goes against the rules of the WTO.
According to the ministry, “India's measures are suspected of violating several WTO obligations, including binding tariffs and national treatment, and constitute import substitution subsidies, which are expressly prohibited by the WTO. These measures give India's domestic industries an unfair competitive advantage and harm China's interests.”
It has urged India to abide by its relevant commitments at the WTO and ‘immediately correct its erroneous practices’.
A ministry spokesperson added, “This is another firm step by China to safeguard the legitimate rights and interests of its domestic industries, following its lawsuit against India's electric vehicle and battery subsidies.”
The Chinese government has been known to have played an instrumental role in supporting and scaling its renewable energy sector over the years, according to an OECD trade policy paper released earlier this year. To counter China’s dominance, several OECD countries have stepped up subsidies to the sector in recent years as they seek to achieve their ambitious climate goals and ensure fair market competition (see Solar & Wind Subsidies Leading To Global Trade-Offs: OECD).
In September 2024, the WTO agreed to establish a panel to review certain tax credits under the US Inflation Reduction Act, in response to a request by China (see WTO To Review Tax Credits Under US Inflation Reduction Act).
