India recently rejected a request from China to set up a dispute panel at the World Trade Organization (WTO) to investigate India’s tariffs on imported high-tech goods and incentives for solar energy products.

China wanted a dispute panel to determine whether import tariffs and incentive measures for solar energy products that it says are contingent on the use of domestic rather than imported goods are consistent with India’s WTO commitments.

China said consultations were held with India for a mutually satisfactory solution, but they failed to resolve the dispute, prompting China’s request for the panel.

It said members should promote their technological and industrial development through cooperation consistent with WTO rules, rather than through restrictive and discriminatory measures that undermine competitive opportunities, disrupt supply chains, increase uncertainty for businesses and operators, and adversely affect the healthy development of global renewable energy and technology sectors.

In response, India rejected China’s demand for a panel. It noted that it had engaged in extensive talks with a view to reaching a mutually satisfactory resolution. India said it was surprised China had not undertaken an actual consideration of the measures at issue, adding that it believes the measures in question are entirely consistent with WTO law.

It was strange that, despite the importance of a responsible and diversified supply chain, a country estimated to control more than 80% of the global value chain for solar module production felt it necessary to take action to stymie the legitimate growth of this industry in other countries.

The WTO’s Dispute Settlement Body agreed to consider the matter if it was brought up again.

Last December, China had complained to the WTO against India’s solar photovoltaic subsidies, alleging that they provide an unfair competitive advantage to Indian companies and harm Chinese interests.

Two months earlier, the country had also filed a complaint over India’s subsidies for electric vehicles and battery manufacturing.