Congress leader Jairam Ramesh recently shared a post on X, criticizing the Adani Group for its overseas investments in China. He further claimed that these investments pose a significant national security threat to India.
Jairam Ramesh asserted, ‘A most favoured business group has been the controversial instrument of the non-biological PM’s foreign policy. Here is our statement on Modani’s latest initiative abroad.’
A most favoured business group has been the controversial instrument of the non-biological PM's foreign policy. Here is our statement on Modani's latest initiative abroad. pic.twitter.com/siQ6SOYy2u
— Jairam Ramesh (@Jairam_Ramesh) September 10, 2024
Timeline posted, ‘Congress Alleges Adani’s Overseas Investments Put India’s National Security At Risk.’
#Congress Alleges #Adani's Overseas Investments Put #India’s #NationalSecurity At Riskhttps://t.co/Zdg1mqKu3u#JairamRamesh pic.twitter.com/vrq0ufhEVO
— Timeline. (@timelinelatest) September 10, 2024
The key question is whether overseas investments in China pose a security risk for India. Is Adani the first and only company to invest in China? Our report will address these questions.
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Fact Check
We began our fact-checking by reviewing news related to the recent Adani Group investment in China. A report from The Hindu, published on September 8, 2024, stated that the Adani Group had formed a subsidiary in China to provide supply chain solutions and project management services, as per a regulatory filing. Adani Enterprises, the group’s flagship company, noted in the filing that a Singapore-based subsidiary had incorporated a wholly-owned subsidiary, Adani Energy Resources (Shanghai) Co. Ltd. (AERCL), in Shanghai, China, on September 2, 2024. AERCL has yet to begin its business operations.
The report also mentioned that Adani Global Pte (AGPTE), a step-down subsidiary of Adani Enterprises Ltd. (AEL), incorporated the subsidiary. AEL manages the group’s mining, roads, airports, data centers, and water infrastructure businesses. The new unit in China was established shortly after AEL set up another subsidiary in Kenya, Airports Infrastructure PLC (AIP), to manage airport operations in the African nation.
Is Adani the first and only company to invest in China?
To address whether Adani is the first and only Indian company to invest in China, we referred to the website of Shanghai’s Consulate General of India. The site lists several Indian companies operating in the Eastern China Region (Zhejiang, Jiangsu, and Shanghai). Indian banks with a presence in China include the State Bank of India, ICICI Bank, Canara Bank, Punjab National Bank, Axis Bank, and Union Bank.
Likewise, in the IT sector, Indian companies such as TCS, Infosys, HCL, Wipro, NIIT, Tech Mahindra, Mphasis, iGate, and Zensar have investments in China. In the pharmaceutical industry, companies like Aurobindo, Amol Biotech, Rotam Reddy Pharmaceuticals, Lupin Limited, Piramal Healthcare, and Sun Pharmaceuticals are active in China. Companies in the engineering and automobile sectors include Adani Power, Aditya Birla Management, Ashok Leyland, and Larsen & Toubro.
Around 110 Indian companies from various sectors have business operations in the Eastern China Region.
Additionally, we looked at the Embassy of India in Beijing, website, which reports that most Indian companies in China are based in Shanghai, with a few located in Beijing. Prominent Indian companies in China include Dr. Reddy’s Laboratories, Aurobindo Pharma, NIIT, Bharat Forge, Infosys, TCS, Wipro, Mahindra & Mahindra, Reliance Industries, Tata Sons, and others.
The Embassy further highlighted that Indian investment in China for 2021 amounted to USD 6.32 million, reflecting a 47.4% year-on-year decline. By the end of 2021, cumulative Indian investment in China stood at USD 943.96 million.
Therefore, the Adani Group’s recent investment in China is not a security risk. Suggesting otherwise is baseless, as over 100 Indian companies have been doing business in China for decades.
| Claim | Business investment in China is a national security risk |
| Claimed by | Jairam Ramesh |
| Fact- Check | The Adani Group’s investment in China is not a security risk, as over 100 Indian companies have been doing business there for decades |
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