Nepal’s diminishing presence at Boao
China is organizing the Boao Forum for Asia (BFA) from March 25 to 28, in Qionghai City, South China’s Hainan Province. It is an annual event at which government officials, heads of international organizations, business leaders and scholars converge to discuss the most pressing issues of the day. However, there will not be high-level participation from Nepal as Nepal’s Ambassador to China Krishna Prasad Oli has been told to represent Nepal.
Last year, then Prime Minister Pushpa Kamal Dahal’s foreign affairs advisor Rupak Sapkota had attended the program. In the past, there used to be participation of the prime minister or president but nowadays Nepal is sending low-key officials. Officials say as Nepal’s top political leadership snubbed the invitation, China has not shown interest to lend the invitation to the top political leadership.
Launched in 2002, the forum has witnessed Asia’s regional integration as it pulled through the Asian financial crisis in 1997, the SARS epidemic in 2003, the global financial crisis in 2008 and the recently concluded Covid-19 pandemic.
In the first conference, King Birendra was invited in 2001 and in 2015 then President Ram Baran Yadav represented Nepal. Now, the region once again finds itself on the cusp of change. “Our world is in the middle of a pivotal transition, where disruptive shifts are profoundly reshaping the international order,” BFA Secretary General Zhang Jun said at a press conference in Beijing. “What this means is that the BFA, as a high-level platform dedicated to dialogue and cooperation, now stands at a new horizon, where it is charged with both greater expectations and heavier responsibilities,” he added.
Major parties committed to implementing BRI
Top leaders of major political parties have reaffirmed their commitment to advancing projects under China’s ambitious Belt and Road Initiative (BRI). They underscored the critical importance of Nepal’s relationship with its northern neighbor, China, for the nation’s economic development and long-term prosperity.
Nepali Congress leader Minendra Rijal, speaking at a high-profile event in the capital, highlighted his party’s preference for grants under the BRI framework. However, he clarified that this does not mean Nepal should rely solely on grants. “We have shared a long-standing relationship with China, built on mutual trust, and we aim to nurture this bond in the years to come,” Rijal stated. He emphasized the need for careful consideration of foreign debt when securing loans from any country.
Rijal also stressed Nepal’s sovereignty, asserting that the country is free to make independent decisions regarding its partnerships. “Our relationship with China is pivotal, and we seek to benefit from China’s remarkable development trajectory,” he said. The NC leader advocated for project-specific negotiations, adding, “Conditions need not be uniform for all projects. Rijal also expressed support for connectivity projects with China.
Senior Vice-chairperson of CPN-UML, Surendra Pandey, echoed the commitment to the BRI, citing Prime Minister KP Sharma Oli’s signing of the BRI agreement with China as a clear endorsement. “Our party fully supports the BRI and its potential to drive Nepal’s development,” Pandey said. “All parties are united on BRI, which was evident during the signing of the BRI framework.”
He, however, pointed out several critical issues that need resolution before projects can move forward.
“Key concerns include the interest rates on loans, the repayment period, the selection of construction companies—whether Nepali or Chinese—and the sourcing of raw materials,” Pandey explained. He criticized the Nepali Congress’s stance on accepting only grants as impractical, urging a more pragmatic approach. “Let’s begin with one project. Its success will provide valuable lessons for future endeavors,” he suggested.
CPN (Maoist Center) senior leader Dev Gurung called for immediate action, emphasizing that delays in BRI implementation are largely attributable to the Nepali side. “There should be no further delays. The BRI holds immense potential to transform Nepal from a landlocked nation into a land-linked hub, bolstering our sovereignty and economic prospects,” Gurung asserted.
The BRI, with its focus on infrastructure and connectivity, is seen as a game-changer for Nepal. Leaders across the political spectrum agree that the initiative could unlock new opportunities, fostering economic growth and strengthening Nepal’s geopolitical standing.
China steps up engagement with NC
After years of strained relations, China has recently intensified its engagement with the Nepali Congress (NC), Nepal’s oldest and largest democratic party. Over the past decade, the relationship between China and the NC had soured due to various political and diplomatic reasons. However, recent developments indicate a shift in China’s approach, as Chinese diplomats and leaders of the Communist Party of China (CPC) have begun actively engaging with NC leaders.
A notable example of this renewed engagement is the recent visit of an NC delegation led by senior leader Sujata Koirala to China. During the visit, the delegation toured several Chinese cities, including Chengdu, and held meetings with senior CPC officials. This marks a significant step in China’s efforts to strengthen ties with the Koirala family, a prominent political dynasty within the NC.
In early March, Sun Haiyan, Vice-Minister of the International Department of the CPC Central Committee, met with Koirala. According to a Chinese readout, Sun praised the NC and the Koirala family for their long-standing commitment to fostering China-Nepal friendship and for upholding the correct stance on issues related to Xizang (Tibet) and Taiwan. Sun emphasized the CPC’s willingness to enhance exchanges and cooperation with the NC and other major political parties in Nepal, urging both sides to focus on implementing the consensus reached between the two countries.
Koirala, in response, reaffirmed the NC’s firm support for the One-China principle and expressed her party’s eagerness to leverage the 70th anniversary of Nepal-China diplomatic relations to deepen mutual understanding and collaboration. This marks a notable shift from the past, when relations between China and the NC deteriorated significantly. One key incident was in 2016, when NC President Sher Bahadur Deuba shared a stage with a representative of the Tibetan government-in-exile at an event organized by the India Foundation in Goa. This incident, among others, led to a period of mistrust and strained ties.
Other factors contributing to the rift included China’s preferential engagement with Nepal’s communist parties, often at the expense of sidelining the NC, as well as the NC’s public criticism of China’s alleged border encroachment and its cautious stance on China’s Belt and Road Initiative (BRI). During this period, Chinese state media frequently portrayed the NC as a pro-Indian party, further exacerbating tensions.
However, relations began to improve following the signing of the Framework for Belt and Road Cooperation during Prime Minister KP Sharma Oli’s visit to China in December 2023. NC General Secretary Gagan Kumar Thapa and Foreign Minister Arzu Rana Deuba played pivotal roles in facilitating the agreement, despite strong opposition within their own party. Their support for the BRI marked a turning point in China-NC relations, even as senior NC leaders like Prakash Sharan Mahat and NP Saud continued to voice concerns about the initiative, arguing that it contradicted the party’s position against taking loans under the BRI.
Since the signing of the BRI agreement, there has been a noticeable increase in visits by NC leaders to China, and the Chinese Embassy in Kathmandu has actively engaged with senior NC figures. This represents a departure from China’s previous approach of primarily engaging with Nepal’s communist parties, a trend that had persisted for over a decade. During this period, China focused on fostering unity among Nepal’s communist factions, leading to a perception among NC leaders that they were being marginalized.
China’s recent outreach to the NC suggests a recognition of the need to broaden its engagement beyond communist parties. This shift is seen as an effort to build a more balanced and inclusive relationship with Nepal’s political landscape. While senior communist leaders have frequently visited China over the years, NC leaders have rarely done so. The current wave of engagement indicates that both sides are working to address past misunderstandings and strengthen bilateral ties.
This renewed engagement comes at a critical juncture, as China seeks to consolidate its influence in Nepal amid evolving regional dynamics. By fostering closer ties with the NC, China aims to ensure that its initiatives, including the BRI, gain broader political support within Nepal. For the NC, this represents an opportunity to reaffirm its role as a key player in Nepal’s foreign policy and to balance its relationships with both China and India.
Sagarmatha Sambaad: Preps, expectations and goals
The government has expedited preparations for ‘Sagarmatha Sambaad’, a global dialogue to be organized on May 16-18 to draw the international community’s attention to the adverse impact of climate change on Nepal’s Himalayas.
It plans to invite global leaders, including Indian Prime Minister Narendra Modi and high-level Chinese officials, for the multi-stakeholder dialogue forum themed ‘Climate Change, Mountains and the Future of Humanity’.
Held on Sunday, the first meeting of a management committee, formed for the preparation of the ‘Sambaad’, decided to invite heads of state and government of mountainous and coastal countries, experts working in the climate research sector, representatives of national and international private sectors and influential figures.
The committee formed under Foreign Minister Arzu Rana Deuba has prepared the format for the arrangement of infrastructures and programs for ‘Sagarmatha Sambad’, said contact person of the Sambad and Joint-secretary of the Ministry of Forests and Environment, Maheshwor Dhakal.
The committee has also decided to form an expert committee comprising 16 experts representing different sectors as well as a publicity and coordination committee under the joint-secretary of the Foreign Ministry. The meeting also decided to request partner organizations for demonstration of good practices to mitigate the impacts of climate change.
According to Dhakal, preparatory dialogue on climate change issues facing women and children will be held at the province level. The Ministry of Forest and Environment, and the Office of the Prime Minister and the Council of Ministers will assign the employees required for the ‘Sagarmatha Sambad’ and Sagarmatha Sambad Secretariat will also be made active for the success of the global dialogue.
Minister for Forests and Environment Ain Bahadur Shahi Thakuri is the co-coordinator and Forest Secretary is the member-secretary of the committee that has Chief Secretary, officials of the Office of the Prime Minister and the Council of Ministers, Foreign Ministry, Finance Ministry, Home Ministry, National Planning Commission, Ministry of Culture, Tourism and Civil Aviation, Ministry of Energy, Water Resources and Irrigation, Alternative Energy Promotion Center and National Trust for Nature Conservation as members.
The previous meeting of the Preparations Committee was held on Feb 9 in the presence of Prime Minister KP Sharma Oli. Inviting heads of state or heads of government from neighbouring India, China and representatives from South Asian countries was the agenda of the meeting.
Though the event was planned during the second premiership of Oli, it was postponed in the 11th hour owing to the Covid-19 pandemic. Secretary of the Ministry of Forest and Environment, Deepak Kumar Kharal, stated that the event aims to amplify Nepal’s voice on climate change, drawing international attention to the country’s high vulnerability despite its minimal contribution to global greenhouse gas emissions.
Through the dialogue, Nepal will advocate for compensation for the losses it faces due to the climate crisis and for payment for its environmental services. Despite the Paris Agreement’s goal to limit the global temperature rise to 1.5°C, projections indicate that the global temperature is expected to exceed by 1.8°C before 2050. Several research studies suggest that this temperature rise could lead to the loss of two-thirds of the snow cover in the mountains.