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China has filed a complaint at the World Trade Organization (WTO) against India’s Production-Linked Incentive (PLI) scheme, alleging violations of global trade rules. The dispute targets PLI programs for ACC batteries, automobiles, and electric vehicles, claiming they promote local content through domestic value addition (DVA) requirements a form of “import substitution subsidy.” China argues this gives unfair advantage to Indian goods. India defends the PLI scheme as a legitimate effort to boost manufacturing and global competitiveness. The issue will first undergo WTO consultations; if unresolved, it may move to a dispute panel, prolonging the trade tension.