'Threat to national security': Congress red flags Adani Group's investment in China

The party contended that these risks are yet another addition to the sacrifices India has allegedly made under Prime Minister Narendra Modi's "special friendships."

Congress General Secretary Jairam Ramesh issued a statement condemning the Adani Group’s plans to invest in China, warning that this decision could pose a threat to India’s national security.

“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 in a press statement.

The national party’s criticism follows reports, based on a regulatory filing, that the Adani Group has established a subsidiary in China to engage in supply chain solutions and project management services.

“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 a 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.

Ramesh stated that while other governments are developing strategies to reduce economic reliance on China, the Indian government has shown a lack of focus in its approach, despite the security threat from Chinese forces at the border.

He pointed out that although TikTok has been banned, imports from China have increased significantly, with the Economic Survey of India 2024 arguing for India’s integration into China’s supply chain. He also alleged that the government has expedited visas for Chinese workers and promoted Chinese investments.

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.

Adani’s China operations

On September 3, Adani Group’s flagship company Adani Enterprises disclosed in an exchange filing that its Singapore-based subsidiary created a wholly-owned entity, Adani Energy Resources (Shanghai) Co (AERCL), in Shanghai, China, on September 2, 2024.

“AERCL is incorporated to carry out the business of providing supply chain solutions and project management services,” it said without providing details.

The new subsidiary was established by Adani Global Pte (AGPTE), a step-down subsidiary of Adani Enterprises Ltd (AEL). AEL manages the conglomerate's operations across sectors such as mining, roads, airports, data centers, and water infrastructure.

“AERCL has been incorporated and registered under the laws of Company Law of the People's Republic of China on September 2, 2024,” the filing said.

AERCL’s business operations have not started yet.