According to an official, New Delhi, India has denied China's proposal to establish a dispute panel at the WTO in a complaint Beijing brought against New Delhi's support measures for the information technology, solar cell, and module industries.
China submitted this proposal to the World Trade Organization's (WTO) dispute settlement committee earlier this month.
The request comes after bilateral talks to find a mutually acceptable resolution to the dispute that China filed in December of last year failed.
According to the Geneva-based official, China's initial request for the creation of a panel has been vetoed by India.China has claimed that India discriminates against Chinese goods by imposing tariffs or import duties on specific technological products and by favouring domestic goods over imported ones.
The WTO's General Agreement on Tariffs and Trade 1994, Agreement on Subsidies and Countervailing Measures, and Agreement on Trade-Related Investment Measures are all violated, according to Beijing, a significant exporter of goods in these sectors.
India has denied China's accusations, saying the actions are entirely compliant with WTO regulations.India added that it was ironic that a nation that is thought to control more than 80% of the global solar module value chain still feels the need to take actions that impede the legitimate expansion of the sector in other nations, even though it recognises the significance of a responsible and diverse supply chain.
At the Dispute Settlement Body (DSB) meeting on May 22 in Geneva, the request was denied.
China may renew its request at the upcoming DSB meeting in accordance with standard procedure. Member states have the right to request the formation of a panel to review the dispute when consultations have failed. The initial request may be rejected by the respondent in accordance with the regulations. A panel is automatically created with the second request.
The panel will decide whether India's import taxes on specific high-tech imports and incentives for solar energy products align with India's WTO obligations.
China and India are both WTO members. A member nation may file a complaint through the 166-member multilateral body's dispute settlement mechanism if it feels that a support measure under a policy or scheme of another member nation is hurting its exports of specific goods.
India has implemented a number of initiatives to support homegrown solar production. These include requiring the use of locally produced solar equipment in some government-backed projects and placing taxes on imported solar cells and modules.
In addition to a production-linked incentive program for the industry, it has developed the Approved List of Models and Manufacturers (ALMM) to promote purchases from domestic makers.
Due to India's actions in the automobile and renewable energy industries, China is also pursuing a separate issue with India within the organization.
With bilateral trade reaching USD 151.1 billion in 2025–2026, China surpassed the US to become India's biggest trading partner. During the same period, the country's trade deficit with Beijing increased to USD 112.16 billion.