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China’s Belt and Road Initiative (BRI) has seen mixed progress in Nepal since the two countries signed the agreement in 2017. A common narrative suggests that no significant projects have been completed under the BRI framework, leading many foreign policy observers to conclude that China has not succeeded in expanding its influence in Kathmandu, largely due to implicit pressure from the West and India. 

Nevertheless, the implementation of BRI remains a top agenda item in interactions between representatives of the Communist Party of China and Nepal’s political parties, especially the communist ones, which have expressed dissatisfaction over the perceived slow progress.

From the Chinese perspective, several soft and hard projects launched in Nepal fall under the broader BRI framework. However, China is pushing for the implementation of more infrastructure projects, as globally, the BRI is perceived mainly as an infrastructure initiative. 

Beyond BRI, China’s reach and influence in Nepal have significantly expanded across various sectors—from education to security, from village to national levels, and from electric vehicles to airline companies. Recent interactions even include the judiciary and parliament, with notable exchanges of visits between officials from both countries.

In November last year, Nepal’s Chief Justice Bishowambhar Prasad Shrestha visited China, followed by a reciprocal visit this week by Liu Guixian, a senior justice of the Supreme People’s Court of China. Senior leaders from Nepal’s National Assembly and the Speaker of the House of Representatives have also visited China in recent years.

Recent examples of China-Nepal cooperation include Chinese Ambassador to Nepal Chen Song’s participation in multiple events. These events illustrate China’s diverse offerings to Nepal, such as organizing the first intra-party school Chinese pop dance competition involving students from 13 primary and secondary schools, and a cardiovascular screening program by specialists from Fuwai Yunnan Hospital, which provided screenings for 4,682 Nepali children diagnosed with congenital cardiovascular disease, offering them free treatment in China.

Additionally, China has resumed the China Higher Level Education Fair, halted for two decades, and Nepal’s colleges and universities are increasingly offering Chinese language courses. The number of scholarships for Nepali students to study in China has also increased, as has the participation of Nepali bureaucrats going to China for education. Beyond education and health, China is also interested in importing Nepali tea, and the two countries are working on petroleum product collaborations. These are just some instances where there is a long list of new areas of collaboration between the two countries. 

For a long time, Western and European countries have been expanding their influence in Nepal through non-governmental organizations. Now Chinese non-governmental organizations (NGOs) are also becoming more active in Nepal. The China Foundation for Rural Development (CFRD), for instance, has been working in the areas of health, education, and other social issues, particularly in the Tarai region. Recently, CFRD provided aid to fire-affected people in the Mahottari district but this is not the first time. CFRD has been providing support in Madhes region since 2015 and it continues to expand. 

China has developed networks and projects to engage with all segments of Nepali society, and Ambassador Song has been instrumental in enhancing bilateral engagement through active social media presence and interactions with media personnel.

Deputy Prime Minister and Minister for Foreign Affairs Narayan Kaji Shrestha has been a strong supporter of bilateral projects, frequently attending events organized by the Chinese Embassy and other Chinese-funded local organizations. Shrestha is notably the only minister in the Pushpa Kamal Dahal-led government, who has been consistently pushing for the signing of the BRI implementation plan, which remains pending.

As China aspires to engage more with Nepal, bilateral visits are expanding, with politicians from various levels visiting China. But it is noteworthy that visits by leaders from the Nepali Congress (NC) are fewer compared to those from communist parties. This could be due to fewer invitations from China or a lack of interest from senior NC leaders. Despite this, both Chinese and NC leaders acknowledge the historical role of bilateral relations, often referencing BP Koirala’s contributions from the 1960s.In summary, while progress on the BRI in Nepal may have been slow, overall Chinese engagement in the country has picked up speed, balancing hard and soft power. The Nepal-China border, which had been largely closed since 2015 and further impacted by Covid-19, has recently reopened, facilitating increased movement of people and goods. This week, the two countries are holding their 16th Secretary-level meeting to review the entire bilateral relationship. To measure China's influence in Nepal solely through the BRI lens is to overlook the broader picture. 

The government has decided to accept a loan worth USD 80 million from the World Bank.

Speaking at a press conference organized to make public the decisions of the Cabinet meeting held in Singha Durbar on Monday, government spokesperson and Minister for Communications and Information Technology Rekha Sharma informed that the government has decided to accept concessional loan assistance worth USD 80 million from the World Bank.

Similarly, the meeting has decided to accept an additional grant of 8.1 million pounds sterling from the British government for the reconstruction and rehabilitation of the damaged infrastructures  and resettlement of earthquake victims in Karnali Province.

Spokesperson Sharma informed that the meeting has decided to approve the China visit of Finance Minister Barshaman Pun. He is going to the northern neighbor to participate in the high-level conference to be held on July 11-July 13.

Likewise, the meeting has decided to appoint Dr Ram Prasad Dhital as the Chairman of the Electricity Regulatory Commission and Madhusudhan Adhikari and Jhamak Prasad Sharma as the members of the Commission.

Meanwhile, the meeting has appointed Dr Rajendra Prasad Yadav as the Executive Director of the National Dairy Development Board.  

Spokesperson Sharma informed that a recommendation committee has been formed under the headship of the Secretary of the Ministry of Agriculture for the appointment of the Executive Director at the Nepal Agricultural Research Council.

Vice Minister of Foreign Affairs of the People’s Republic of China, Sun Weidong, arrived in Kathmandu this morning.

He arrived on a three-day official visit to attend the Sixteenth Meeting of Nepal-China Diplomatic Consultation Mechanism taking place in Kathmandu June 25, 2024.

He was warmly welcomed by Krishna Prasad Dhakal, Joint Secretary and Head of the North East Asia Division of Ministry of Foreign Affairs, at the VIP Lounge in Tribhuvan International Airport, Kathmandu.

Foreign Secretary Sewa Lamsal will lead the Nepali delegation of senior officials from various ministries of the Government of Nepal at the Consultation Mechanism Meeting while Vice Minister Weidong will lead the Chinese delegation, the Ministry of Foreign Affairs stated.

During the visit, overall areas of bilateral relations and cooperation between Nepal and China will be discussed.

The Chinese Vice Minister of Foreign Affairs is also scheduled to pay courtesy calls on President Ram Chandra Paudel and Prime Minister Pushpa Kamal Dahal during his visit.

Vice Minister Weidong will leave Kathmandu on June 26, 2024.

The government has decided to transfer suspended Chief Secretary Baikuntha Aryal to the National Planning Commission by creating a special post.

A Cabinet meeting held Monday decided to transfer Aryal to the National Planning Commission by creating a special after he refused to put in his papers, government spokesperson and Minister for Communications and Information Technology Rekha Sharma said.

“The Chief Secretary of the Government of Nepal Baikuntha Aryal has been automatically suspended after the Commission for the Investigation of Abuse of Authority filed a corruption case against him. A decision has been made to transfer him to the National Planning Commission by creating a special post,” she said.

The anti-corruption watchdog on Sunday filed a graft case at the Special Court against 12 persons including Chief Secretary Aryal for their alleged involvement in carrying out irregularities in the printing of excise duty stickers.

The Authority has demanded Rs 386.7 million in recovery from each of those involved in corruption, according to Dhan Bahadur Karki, Spokesperson at Special Court.