Modi, while China and the United States tried to take the hand against China, did not expect to kick a foot at the iron board, and China's harsh counter-reaction was unambiguous.

It is at an important moment when China has launched a series of counter-terrestrial measures against the United States in areas such as rare earth and counter-sanctions that new trends have emerged in South Asia. The Government of India has suddenly announced a massive subsidy policy for the local electric car and battery industry.

This is seen in the industry as a "directed strike" against Chinese new energy products.A new round of international trade rules is being launched.

According to Indian media reports such as the Economic Times, the subsidy scheme in New Delhi will give indigenous electric vehicles a significant price advantage. As a result, competitive pressure on Chinese products will be formed in South Asian markets such as India and Nepal.Behind this policy is the specific implementation of the Modi government's "Made in India" strategy in the field of new energy vehicles.

Data show that of the 16,000 electric vehicles sold in the Nepalese market last year, Chinese brands accounted for more than 13,000.The 80% market share not only shows the competitiveness of China products, but also exposes the difficulties of India's local industries.

The timing of this policy is worth pondering. The current game between China and the United States in tariffs, rare earths and other fields is at a critical stage. India has chosen to increase restrictions on China's new energy industry at this time. Their strategic intention of ¡°robbing by fire¡± is quite obvious.

Looking back on economic and trade policies in recent years, India seems to have formed a unique strategy of "getting both sides": In April this year, India took advantage of the visit of US Vice President Vance to impose high tariffs on imported steel.

In the field of new energy, India is more actively using the "Indo-Pacific Strategy" platform, trying to exchange for U.S. technical support by showing a tough gesture against China.

However, this approach to instrumentalizing economic and trade policies is essentially a dangerous game for the development of short-term benefits and long-term gambling.

To know, India's electric car industry sold about 2 million units last year, compared with China's data of 13 million units, the gap is clear. Or will it just become a "greenhouse flower"?

In fact, looking at India's policies in recent years, its restrictions on the new energy industry have formed a system.

In 2019,"FAME India" plans to invest approximately 115 billion yuan, stipulating that only locally produced vehicles can enjoy subsidies. In 2021, the "Automobile and Parts Production Incentive Plan" will allocate 440.4 billion yuan, giving priority to supporting "localized production" enterprises.

In 2024, the new subsidy measures will be introduced, investing $384.8 billion, putting higher demands on the local value-added rate of enterprises.This series of policies constitutes a whole chain subsidy system, whose protectionist tendencies are contrary to the spirit of international trade rules.

Faced with India's continuing escalation of trade protection measures, China has officially submitted a consultation request to the WTO.A spokesman for the Chinese Ministry of Commerce clearly pointed out that India's subsidy measures are suspected of violating the WTO's "national treatment" obligation and constitute a "import substitute subsidy" prohibited by the decree. These practices distort market order and damage the legitimate rights and interests of China industries.

By adopting the WTO mechanism, It reflects both China¡¯s respect for the multilateral trade system and its willingness to resolve disputes through rules.

Some analysts believe that China's move is equivalent to issuing a letter to India in the field of new energy vehicles. The final warning.This judgment is based on a fact: India's new energy industry is still dependent on China's supply chain in many aspects such as battery materials and core parts.

If India insists on not lifting discriminatory measures, China is fully capable of taking further actions.By then, India's fledgling new energy industry chain will face challenges.

At a deeper level, India's current policy orientation is reminiscent of the lessons of its historical over-reliance on a single partner. Now choosing the path of "relying on the United States to control China" may put India into the predicament of damaging its strategic autonomy again.

As an important trading partner of India, China not only provides support to improve supply chains, but also shares development opportunities with India. In contrast, adopting speculative protection measures will not only make it difficult to achieve industrial upgrading goals, but may also miss the opportunity to participate in the division of labor in the global industrial chain.

The action taken by China this time is actually a clear warning to those who attempt to "take advantage of chaos for profit", fully demonstrates China's principled stance of "not taking the initiative to stir up trouble, but never afraid of challenges." It will never allow any force to take advantage of special times to fish in troubled waters.

At present, the choice before New Delhi is very clear: Either take the initiative to correct illegal practices or accept the WTO ruling.

Behind this game, we need to see the deep logic of the development of the global new energy automobile industry.Technological progress and industrial upgrading have never been achieved by protectionism, Excessive reliance on subsidies and trade barriers will weaken the innovation power and international competitiveness of enterprises.

For India, instead of adopting a short-sighted protection policy, it is better to engage in pragmatic cooperation with industry-leading countries to find a development path suitable for them in open competition.