A most favoured business group has been the controversial instrument of the non-biological PM’s foreign policy, the Congress alleged on Tuesday. Congress general secretary in-charge communications Jairam Ramesh shared on X the party’s statement on “Modani’s latest initiative abroad”.

With the Adani Group floating a China subsidiary for providing project management services, the Congress alleged the risk is now that the conglomerate’s investments in China will add national security and territorial sovereignty to the growing list of sacrifices that India has made at the altar of Prime Minister Narendra Modi’s “special friendships”.

The party also alleged that “the non-biological PM’s clean chit to China on June 19, 2020” was one of the most damaging statements ever made by an Indian prime minister.

“It was a flat-out lie that eroded the sanctity of the position, and it enabled the Chinese to deny the reality of their infringement on and continued occupation of Indian territory,” Ramesh said in the statement.

Since then, it has also underpinned the government’s inattention to the risks of uncontrolled Chinese imports, investments, and immigration, he said.

With the Adani Group planning to invest in China, it appears that the clean chit to China is all set to become a “letter of support”, the Congress leader said.

“First, it is to be noted that the government’s economic policy making towards China has always been inadequate, partly because the non-biological PM’s clean chit has precluded more aggressive action,” Ramesh said.

Across the world, governments have taken strong corrective action against uncontrolled Chinese imports through tariffs and anti-dumping investigations, he said.

Governments are pursuing integrated economic strategies to prioritise ‘decoupling’ from China rather than risk being economically beholden to it, Ramesh said.

He claimed the Indian government, despite the looming national security threat of Chinese soldiers on our borders and within our territory, has been scatter-brained in its response.

“TikTok has been banned, but imports from China have surged and wreaked havoc domestically even as the Economic Survey of India 2024 makes the tone-deaf argument that ‘it is inevitable that India plugs itself into China’s supply chain’,” he said.

The government has also simultaneously moved to fast-track visas for Chinese worker in India and encouraged Chinese investments, he alleged.

Even before Adani directly invested in China, the government was “napping at the wheels”, Ramesh claimed in his statement.

“Second, the Adani Group’s previous operations in China and East Asia have been highly suspicious. Chang Chung-Ling, a Taiwanese businessman, has served as director on several Adani Group firms. In 2017, a ship owned by Chung-Ling’s family was caught smuggling oil to North Korea in a violation of UN sanctions – it emerged that the smuggling ship’s operation were partly financed by a firm owned by Shanghai Adani Shopping Company,” he alleged.

“This Shanghai Adani Shipping Company has done business with Adani Global and the Chung-ling owned Hi Lingos, alongside another firm called Adani Shipping (China) Company (aka Dalian Adani Shipping). Remarkably, none of these firms which appear to be implicated in globally illegal activities – have been acknowledged as Adani subsidiaries so far,” he said.

Ramesh claimed the last few years have seen a pattern of Adani’s overseas investments often undermining our national interest and contributing to bad outcomes for India.

The Bangladesh government’s contract to purchase power from Adani’s coal plant in Jharkhand, for instance, became a flashpoint in the protests that led to PM Sheikh Hasina’s resignation last month, he said.

Adani’s interests in Sri Lanka, Kenya, and Australia have all served to India’s detriment, partly because the “non-biological PM’s friendship with Mr. Adani is now globally well known”, Ramesh alleged.

“This subordination of India’s foreign policy interests to the Adani group’s commercial interests has led to unprecedented reversals for India on the global stage. It now appears that in addition to foreign policy, Modani’s overseas investments can now cost India her national security vis-a-vis China,” he said.

“India has already made many sacrifices, domestically and globally, at the altar of the non-biological PM’s special friendships,” Ramesh alleged.

The government’s policy making on China has already been grossly inadequate, he said.

“The risk is now that the Modani’s investments in China, especially given their dubious history, will add national security and territorial sovereignty to this growing list of sacrifices that India has made,” Ramesh said.

The Adani Group has formed a subsidiary in China to offer supply chain solutions and project management services, according to a regulatory filing.

Adani Enterprises, the group’s flagship firm, in the filing said a Singapore-based step-down subsidiary incorporated a wholly-owned subsidiary, Adani Energy Resources (Shanghai) Co. (AERCL), domiciled in Shanghai, China on September 2, 2024. The subsidiary was incorporated by Adani Global Pte (AGPTE), Singapore, a step-down subsidiary of Adani Enterprises Ltd (AEL). AEL houses the conglomerate’s mining, roads, airports, data centre and water infrastructure businesses.