Global trade frictions have resurfaced as China has formally taken India’s solar energy and information technology (IT) policies to the World Trade Organization (WTO), initiating the consultation process between the two countries. The move signals a new phase of economic diplomacy and reflects growing concerns over market access and policy alignment between Asia’s two largest economies.
According to WTO procedures, consultations mark the first formal step in resolving trade disputes. China has raised objections to certain Indian policy measures, arguing that they may be inconsistent with WTO norms and could adversely affect Chinese companies operating or seeking entry into the Indian market, particularly in the renewable energy and technology sectors.
India’s solar sector has witnessed rapid growth in recent years, driven by government-backed initiatives aimed at boosting domestic manufacturing, reducing import dependence, and strengthening energy security. Similarly, India’s IT-related policies are designed to support local innovation, data security, and the expansion of homegrown digital infrastructure. However, China contends that some of these measures create discriminatory conditions and restrict fair competition.
Officials familiar with the development suggest that the consultation phase will provide both sides an opportunity to clarify their positions and explore a mutually acceptable solution without escalating the matter into a full dispute panel. If consultations fail to resolve the issue within the stipulated timeframe, China may seek the establishment of a WTO dispute settlement panel.
The development comes at a time when global supply chains are undergoing realignment and countries are increasingly prioritizing strategic sectors such as renewable energy and digital technology. For India, the challenge lies in balancing its domestic industrial objectives with international trade commitments, while for China, the case underscores its intent to protect overseas commercial interests through multilateral mechanisms.
Trade experts believe the outcome of these consultations could have wider implications, not only for bilateral trade relations between India and China, but also for how emerging economies design policy frameworks to support strategic industries under WTO rules.
