Peeved over the Nepalese Parliament’s approval of the US-funded USD 500 million grant agreement despite its persistent opposition, a concerned China said on Monday that Washington should not undermine the sovereignty of other countries through “coercive diplomacy”, The Print reported.

Much to the surprise of Beijing, Nepal’s Parliament on Sunday ratified the contentious US-funded USD 500 million Millennium Challenge Corporation (MCC) compact along with an Interpretive Declaration a day ahead of the February 28 deadline set by Washington, ending months of debates, protests and polarisation in the Himalayan nation.

“We noted the decision and the declaration by the Nepalese parliament,” Chinese Foreign Ministry spokesman Wang Wenbin told a media briefing here in response to questions from the official media about the Interpretive Declaration, which was passed along with the US aid highlighting Nepal’s sovereignty.

Senior leader of the ruling Nepali Congress Ram Chandra Poudel has said that the declaration includes the statements that the MCC is not part of the Indo-Pacific Strategy, Nepal’s constitution will be above any provisions of the MCC and the country will perceive it purely as economic assistance.

“China has stressed repeatedly that international formal cooperation should follow the principle of mutual respect, equal treatment and fully respect the sovereignty of the country concerned and the will of its people,” Wang said.

“It should not interfere in other country’s internal affairs to engage in coercive diplomacy, undermine other sovereignty and interest out of selfish interests,” he said, adding that Beijing always supported Nepal choosing an independent path of development.

The MCC is a bilateral United States foreign aid agency established by the US Congress in 2004. It is an independent agency separate from the State Department and USAID.