China has filed a complaint against India at the WTO, alleging that India's Production-Linked Incentive schemes violate trade rules by favoring domestic over foreign goods. This matters as it could impact international trade relations and manufacturing strategies.

China has formally complained to the World Trade Organization (WTO) regarding India's Production-Linked Incentive (PLI) schemes, which are designed to boost domestic manufacturing in sectors such as advanced chemistry cell (ACC) batteries, the automotive industry, and electric vehicles. China contends that these schemes provide subsidies that favor domestic production over imports, violating WTO rules. The PLI schemes require companies to achieve specific domestic value addition (DVA) thresholds, which China argues unfairly discriminates against its products. Under WTO law, subsidies that create an artificial advantage for domestic industries can lead to unfair competition. The dispute will initially involve consultations between India and China, and if unresolved, may escalate to a WTO panel for adjudication. The outcome could have significant implications for international trade dynamics and the future of manufacturing in both countries.