A statement issued by the spokesperson of the ministry of commerce in Beijing said that India’s measures allegedly violate multiple WTO obligations, including the principle of national treatment, and constitute import substitution subsidies explicitly prohibited under WTO rules.

“They grant unfair competitive advantages to India’s domestic industries while undermining China’s interests,” the statement said.

A spokesperson for the commerce ministry in India did not respond to requests for a comment. According to a person aware of the matter, who asked not to be named, said such notices are not uncommon and countries often flag subsidies and tariffs that other nations impose. In such cases, the tariffs, subsidies or incentive schemes are defended on the ground of being necessary for domestic economic or industry goals.

The Chinese notice urged India to honour its WTO commitments and promptly adjust these measures.

This is the second petition filed by China at the WTO against India this year.

The petition filed against India in October alleged unfair subsidies for electric vehicles and batteries and requested consultations with India at the WTO to discuss India’s subsidy measures in the electric vehicle and battery sectors, which it alleges undermine its interests.