China files WTO complaint against Indian solar subsidies

China has lodged a case with the World Trade Organization (WTO) against India over the country’s subsidies for its photovoltaic sector, the Chinese commerce ministry has confirmed.

The ministry says a request for consultations to India was submitted at the WTO on Friday (19 December) and relates to both the country’s solar subsidies and its tariff measures on information and communication products.

The Chinese ministry claims the measures violate several WTO obligations, including binding tariffs and national treatment, and constitute import substitution subsidies, which are prohibited by the WTO. The ministry added this gives India’s domestic industries an unfair competitive advantage and harms China’s interests.

“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,” a statement from the ministry adds. “We once again urge India to abide by its relevant commitments at the WTO and immediately correct its erroneous practices.”

This is the second complaint China has raised against India via the WTO in recent months, after it filed a separate objection in October relating to India’s state subsidies for electric vehicles and battery production.

The WTO helps to regulate disputes related to clean energy technologies by preventing local content rules, such as domestic solar subsidies, from unfairly favouring domestic green tech companies. It also works to ensure environmental policies do not become hidden trade barriers.

In October, pv magazine reported that while WTO law remains binding in such cases, the organization is in crisis with its main dispute settlement authority no longer functioning.