The request follows failure of bilateral consultations on reaching a mutually agreed solution on the dispute filled by China in December last year.
Also read: WTO sets up panel in China’s case against India’s certain auto, renewable measures
The consultations were held on February 10, 2026 with a view to reaching a mutually agreed solution.
“Unfortunately, those consultations failed to resolve the dispute. Accordingly, China submits the…request for the establishment of a panel,” a communication of the World Trade Organization (WTO) said.
China has alleged that India’s tariff or import duty on certain technology products, and measures like use of domestic products over imported goods, discriminate against Chinese goods.
Beijing, which is a major exporter of goods under these sectors, had claimed that these support measures and incentives infringe rules pertaining to WTO’s General Agreement on Tariffs and Trade 1994, Agreement on Subsidies and Countervailing Measures, and Agreement on Trade-Related Investment Measures.
Seeking consultation is the first step of the dispute settlement process as per WTO rules.If the consultations requested with India do not result in a satisfactory solution, China can request the WTO to set up a panel in the case to rule on the issue raised.
China is the second-largest trading partner of India.
Also read: India opposes China-led investment pact in WTO
In January also, China requested the WTO’s dispute settlement body to set up a panel in another case it has filed against India over New Delhi’s incentive schemes for auto, battery and electric vehicles after bilateral consultations failed to resolve the dispute.
India’s exports to China rose 36.66 per cent to USD 19.47 billion during the last fiscal year, while imports increased 16 per cent to USD 131.63 billion. The trade deficit swelled to an all-time high of USD 112.6 billion in 2025-26 as against USD 99.2 billion in 2024-25.