2008 INC-CCP MoU

2008 INC-CCP MoU

Memorandum of Understanding between Indian National Congress and Communist Party of China, 2008
Logo of the INC (left) and flag of the CCP (right)
Type	Memorandum of understanding
Context	Classified
Signed	7 August 2008
Location	Beijing, China
Original signatories	Rahul Gandhi (Indian National Congress) Xi Jinping (Communist Party of China)

The 2008 INC-CCP MoU (also known as Congress-China MoU) is a memorandum of understanding between the Indian National Congress (INC) and the Chinese Communist Party (CCP) signed in 2008. The pact is signed to put in place a mechanism that would help regular high-level exchanges between them but the exact content of this document were never made public.

Background

India–United States Civil Nuclear Agreement

The primary opposition to the nuclear deal in India came from the Communist Party of India (Marxist) (CPI(M)) and its parliamentary allies (Communist Party of India, Revolutionary Socialist Party (India), All India Forward Bloc). On July 9, 2008, the Left Front withdrew support to the government reducing its strength to 276 in the Lok Sabha (the lower house of the parliament). The government survived a confidence vote in the Parliament on July 22, 2008 by 275-256 votes in the backdrop of defections from both camps to the opposite camps.

The MoU with CPC came shortly after the Left parties in India expressed their lack of trust in the Congress-led UPA government. The fact that China, though aware of the recent developments in India, decided to go ahead and sign this document shows it is trying to build a relationship with the Congress, and the Nehru-Gandhi family in particular, that goes beyond the UPA government.

2008 Summer Beijing Olympics

Eighty heads of state and government were invited to the Beijing Olympics but neither the then Prime Minister of India, Manmohan Singh nor the then President of India was invited in the Olympics that the neighboring nation was hosting. Instead of inviting the head of the state or the government, the formal invitation went to the then Congress Chief, Sonia Gandhi.

After the questioning from Opposition parties and other, the officials said that the Prime Minister would not have gone and tried to defend the lack of invitation.

The MOU between Indian National Congress and the Communist Party of China was signed during this visit only.

Signing of the MoU

India's then ruling Indian National Congress and the Communist Party of China (CPC) on 7 August 2008 signed a pact to put in place a mechanism that would help regular high-level exchanges between them. This development happened soon after party chief Sonia Gandhi arrived in Beijing with her family for the Olympics inaugural ceremony.

Before the signing of the MoU, Sonia Gandhi and Rahul Gandhi held a meeting with Xi and other senior leaders of the Communist Party of China and held discussions on issues of mutual interest.

The MoU was signed by the Chinese vice-president and standing committee member of the CPC's politburo, Xi Jinping, and Congress general secretary Rahul Gandhi in the presence of his mother and party president Sonia Gandhi.

Reaction

Ravi Shankar Prasad said that in 2008, the Congress had signed a Memorandum of Understanding (MoU) with the Communist Party of China. “The party has not yet explained what was the compelling need for party-to-party relationship,” said Mr. Prasad.

2020–2021 China–India skirmishes

Accusing Rahul Gandhi of trying to "divide the nation" and "demoralise" the armed forces during crucial situations (Galwan Clashes), BJP president J P Nadda asked on Tuesday if it was the "effect" of the MoU the Congress had signed with the Communist Party of China. "First, Congress signs MoU with the Chinese Communist Party. Then, Congress surrenders land to China. During Doklam issue, Rahul Gandhi secretly goes to the Chinese embassy. During crucial situations, Rahul Gandhi tries to divide the nation and demoralise armed forces. Effects of MoU?" Nadda said in a tweet.

Citing a Chinese newspaper report, Sambit Patra alleged that the Gandhi family has got "endorsement" from China and its President Xi Jinping. This is a classic definition of "anti-India stand", he said. "Congratulations to Rahul Gandhi. You were earlier a hero of Pakistan. Now, you are a hero of China too. But you are a big zero for India. You are a hero for our enemies. China is in a disadvantageous position and is using the Congress's shoulders to fire at India... This is a classic definition of anti-India stand," Sambit Patra said at a press conference.

Rajiv Gandhi Foundation

Amit Malviya alleged that donations to the Rajiv Gandhi Foundation whose Chairperson is Congress President and Sonia Gandhi, were made in 2005-06 by the Chinese Embassy in India as well as the Government of China when the Congress-led UPA-I was in power. The annual statements of the RGF show that it received donations not once, but thrice between 2005 and 2008.In this time, the RGF launched seminars and projects on India and China relations. The most striking is a study on the feasibility of a Free Trade Agreement between India and China by Mohammad Saqib.The reports of the RGF, while acknowledging that the China would be "the greater beneficiary” because of the “efficiency of its economy”, they continuously advocate a comprehensive free trade agreement:

"The study concluded that ‘there are always losers and gainers in the regional and free trade agreements. India and China can balance the gains and losses through an FTA. Therefore both governments should decide to enter into FTA negotiations. The proposed FTA between India and China will be feasible, desirable and mutually beneficial. An FTA between India and China should also be comprehensive, with a free flow of goods, services, investment and capital.’

..an FTA would help bilateral economic relations and that the free flow of goods, services, investment and capital would, in fact, benefit India’s trade sector more than China’s."

India recorded a trade deficit of $48.5 billion with China in FY20. It is more than 60 per cent of the size of India’s total goods trade of $87 billion with China.For February 2020, the trade deficit with China stood at $3.3 billion while India’s trade deficit was $9.8 billion, that is, China accounted for about 34 per cent of the total.Large trade deficit is continuously an issue of contention between the two countries. This has caused many questions to be raised against the RGF’s strong advocacy of the FTA.

“Questions for the Congress - these donations to RGF, if you can still call them that, have any connection with the MoU signed between the Congress and CPC in 2008? What other things is the Congress party hiding from India on its relations with the CCP? Full disclosure needed,” wrote Malviya.

Petitions Seeking Investigation

A petition filed in the Supreme Court has sought a probe into the alleged deal signed between the Congress party and China’s ruling Communist Party of China (CPC) during the UPA’s tenure in power at the Centre. The petitioners have urged the court to pass an interim order asking not to disclose any information about the deal in the public domain. Besides, the petition also seeks a high-level probe by the National Investigation Agency (NIA) and Central Bureau of Investigation (CBI).

Surprising the Supreme Court, the then Chief Justice S A Bobde remarked "We find that there is something which appears to be, what might be called, unheard of and absurd in law. You are saying that China has entered into an agreement with a political party and not the government. How can a political party enter into an agreement with China,"

Then Bench headed by then Chief Justice SA Bobde asked senior counsel Mahesh Jethmalani, representing petitioners Shashank Shekhar Jha and Savio Rodrigues, to withdraw the PIL and approach the high court. “Every relief which you are seeking can be granted by the high court. Secondly, the High Court is the proper court. Thirdly, we will have the advantage of the High Court order also,” the CJI said.