Dai Yonghong, the head of the geopolitical studies unit of Sich­uan University, is an old Nepal watcher. He is currently a visiting professor at the Masters in International Relations and Diploma­cy (MIRD) program of Tribhuvan University. Laxman Shrestha and Purushottam Poudel of APEX caught up with him to discuss China’s Belt and Road Initiative (BRI) and its impact on Nepal.

 

 

 How do you assess Nepal’s participation in BRI?

 

Nepal and China have made dozens of agreements under the BRI. We should first be assured that this will be of benefit to both the countries. We should not deviate from the projects that have already been agreed upon. Political stability is vital for the completion of the agreed projects and I believe the merger between the two main communist forces in Nepal is a harbinger of this stability.

 

There is now a debate in Nepal about whether the country should look to the south or the north. I believe Nepal should rise above this debate and develop a global outlook. China always looks to partner with countries that it can help economically. There can be no development by partnering with countries that want instability more than they want development.

 

How do we evaluate the trade and investment components of the BRI?

 

I believe the issue of trade and investment should be placed under a broader economic framework. China does not want any political gain from its neighbors. We just want strong and long-lasting relations based on mutual trust. A strategy that has political objectives might work in the short run but it can­not help us achieve our long-term goals.

 

If that is the case, what does China want from its neighbors?

 

We want to see our neighbors develop. We want other countries in the region to benefit from China’s economic rise. At one time China used to be one of the largest importers of foreign direct investment in the world. Now, we are the biggest FDI investor in the world. Other countries can utilize this eco­nomic clout of China to their benefit.

 

China also has great technical expertise. China has made rapid progress in technology used in infrastructure development as well as in technol­ogy related to communication and agriculture. Other countries can use this expertise. More than that, you can also utilize our management expertise. If you have all the resources but you don’t have management expertise, then all those resources have no meaning.

 

How do you see Nepal-China cooperation shape up under the BRI?

 

China can utilize its capital, technological and management expertise to build railways in Nepal as the state of Nepal’s roads is unsatisfactory. Not the least because Nepal will need railways to connect with the ocean. Nepal is often called a yam between India and China but if it can emu­late the economic prosperity of India and China, it can be a diamond between these two Asian powers. Nepal is in a situation whereby it can develop by taking a ‘free ride’ on the pros­perity of its two neighbors. The important question is: Does Nepal now have the kind of economy agenda and the leadership to push this agenda for the kind of economic transfor­mation it envisions?

 

How will the Chinese investment in Nepal be different from its investments in Pakistan, Sri Lanka, Laos or Myanmar, the investments that have not always been seen in favorable light?

 

The kind of investment will depend on the dialogue between the two countries. It will be wrong to see investments under BRI as China somehow wanting to build a monopoly in a country. China will move ahead strictly based on consultations with host countries.