The World Trade Organization (WTO) Dispute Settlement Body has decided to establish a panel to address a trade dispute between China and India concerning tariffs and other measures imposed by India in the renewable energy and automotive sectors. The decision was made during a meeting held on February 24.

China's earlier request to form a dispute resolution panel had been blocked by India during a WTO meeting on January 27.

Beijing contends that India’s tariffs and related measures in renewable energy and automobiles include "restrictive" and "discriminatory" incentives and other requirements, which violate international rules overseen by the WTO Dispute Settlement Body.

India's delegation expressed regret that the dispute continues, stating that it has engaged in negotiations with China "in good faith" while maintaining that its measures are consistent with WTO regulations.

Such disputes can persist within the WTO for several years. The process is further complicated by the United States blocking the appointment of judges to the organization's Appellate Body, which issues final rulings. Since 2019, U.S. actions have effectively stalled numerous trade disputes.