India joined a coalition of 13 economies on June 26, 2024 to tackle structural excess capacity in key sectors dominated by China. The group, led by the United States, includes Canada, the European Union, Japan, South Korea, Mexico, France, Germany and the United Kingdom.
The coalition targets five categories: autos and electric vehicles, batteries, chemicals, foundational semiconductors and solar panels. Each of these industries has seen a surge in production that outstrips global demand, a trend China has long been blamed for through subsidies and dumping practices.
In a joint statement, coalition members warned that unchecked excess capacity could cripple domestic industries, displace local production, destroy jobs and erode living standards. The declaration also pledged to end non‑market policies that distort trade and to work together on sector‑specific platforms.
The United States, meanwhile, is probing several member countries, including India, under Section 301 of the Trade Act for structural excess capacity. The move follows President Trump’s recent meeting with Chinese President Xi Jinping, underscoring the administration’s focus on countering China’s industrial dominance.
The coalition will convene a technical meeting before December 2026 to develop terms of reference, share non‑confidential data on excess capacity, and identify information gaps. The aim is to formulate effective, complementary actions that defend member economies from the negative impacts on trade and workers.