TL;DR
China has filed a complaint with the WTO, alleging that India's Production Linked Incentive schemes for EV and auto manufacturing violate international trade rules.
China has formally challenged India's Production Linked Incentive (PLI) schemes for advanced chemistry cell battery manufacturing, automobiles, and the broader policy aimed at promoting electric vehicle production. Beijing has filed a complaint at the World Trade Organization (WTO), alleging that certain conditions within these Indian measures violate global trade rules. This move initiates a dispute settlement mechanism, with China seeking consultations with India on these specific measures.
According to reports, China asserts that India's policies are contingent upon the use of domestic content or other conditions that restrict trade, thereby conflicting with WTO regulations. India has acknowledged the complaint and is expected to respond as per the established global trade norms. The outcome of these consultations could have significant implications for India's domestic manufacturing push in the automotive and EV sectors.