The Labour shadow chancellor mocked the Chancellor — who he dubbed “Comrade Osborne” — for encouraging China to invest in British infrastructure projects.

He is thought to be first frontbencher ever to reveal a copy and quote directly from the communist book.

After joking about the sale of public assets to the Chinese government, Mr. McDonnell said: “To assist Comrade Osborne about dealing with his new found comrades, I have brought him along Mao’s Little Red Book.”

Mr. McDonnell continued: “Let me quote from Mao, rarely done in this chamber, ‘We must learn to do economic work from all who know how. No matter who they are, we must esteem them as teachers, learning from them respectfully and conscientiously. But we must not pretend to know what we do not know’.

“I thought it would come in handy for you in your new relationship.”

Tory MPs roared “more, more, more” at Mr. McDonnell.

Mr. Osborne said: “So the shadow chancellor literally stood at the Despatch Box and read out from Mao’s Little Red Book.”

Opening the book, he went on: “Oh look! It’s his personal signed copy.

“The problem is half the shadow cabinet have been sent off to re-education.”

The Chancellor held up the book for MPs to see as Mr. McDonnell watched on.

Read the article “British Leftist Member of Parliament Quotes Mass Murderer Chairman Mao” on telegraph.co.uk.