China files plaint against India at WTO over EV sops

China has filed a complaint against India at WTO over New Delhi’s subsidies for electric vehicles and batteries. The Chinese commerce ministry has alleged that the measures by India violate several WTO obligations, including the principle of national treatment, and constitute import substitution subsidies.These measures unfairly benefit India’s domestic industries and undermine China’s legitimate interests, the ministry’s statement claimed. China’s complaint about India’s reported EV subsidies comes as Beijing seeks to boost exports of its EVs to India. This follows the two countries’ initiative to normalise relations after a five-year freeze in ties due to the Eastern Ladakh military standoff.Considering the size and scope of India’s auto market, Chinese EV automakers see it as a major source to expand sales. According to reports, facing overcapacity with large production of EVs and declining domestic sales and profits amid price wars, Chinese hybrid car makers like BYD are looking for overseas markets, especially in the EU and Asia.