The Dispute Settlement Body confirmed the formation of the panel on Tuesday, marking an escalation in trade tensions between the two nations. Beijing contends that India’s specific incentives and import duties violate core WTO commitments, creating an uneven playing field for Chinese manufacturers.
India has resisted the move, suggesting that the organization’s limited dispute resolution resources should be prioritized for more pressing and unresolved trade conflicts. Despite these objections, the process will now move to a formal examination phase to determine whether the contested measures align with international trade rules.





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