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Politicians are making a beeline to China. But what’s the catch?

Kamal Dev Bhattarai

Aug. 15, 2023, 7:53 a.m.

Politicians are making a beeline to China. But what’s the catch?

Vice President Ram Sahay Prasad Yadav on Monday left for China for a week-long official visit. He is due to attend the Seventh China-South Asia Exposition and twenty-seventh China Kunming Import and Export Fair.

Vice President Yadav is also expected to hold some high-level talks with Chinese officials. This will be his first foreign visit after his election in March this year. He had expressed his wish to visit India first, but did not get an invitation from the southern neighbor.

China has increased its engagement with Nepal in recent days. There have been increased high-level visit exchanges between both countries, and these visits are not just limited at government-to-government level. Many visits have taken place at the party-to-party level as well.

Communist Party of China has sent several of its delegation to Nepal and correspondingly, various political parties of Nepal have received invitations from the CPC. The series of visit exchanges between government officials and political party representatives is a clear sign that China accords high priority to Nepal.

In meetings with Nepali officials, CPC leaders have said that they are willing to enhance cooperation and exchanges with Nepal in agriculture, poverty reduction and education to enrich the relationship between the two countries through subnational exchanges.

China stepped up its engagement with Nepali parliamentarians as well, mainly after the endorsement of America’s Millennium Challenge Corporation (MCC).

Earlier in June, Chairman of the National Assembly Ganesh Prasad Timilsina visited China where he held talks with his counterpart Zhao Leji and other high-level government officials. Likewise in July, Deputy Speaker of the House of Representatives Indira Rana-led parliamentary team visited China to attend the Eco Forum Global Guiyang-2023.

Amid flurry of visits, preparations are also underway for Prime Minister Pushpa Kamal Dahal’s visit to China in September. While Beijing has also extended an invite to President Ram Chandra Poudel, he is most likely to visit India first.

Regarding the possible agenda of Prime Minister Dahal’s upcoming China visit, he has already said that some vital agreements relating to power-trade agreements and bilateral projects would be signed. But some experts say despite Prime Minister Dahal’s plan to sign a power trade agreement with China, it is not feasible.

Ganesh Karki, chairman of Independent Power Producers’ Association, says after the construction of transmission lines, Nepal could be able to send a small amount of electricity to China, but Nepal’s main market is India.

Just like the transit and transport agreement, Dahal may have planned to give a symbolic message, but China cannot become a major market for power trade (see page 4 for detailed report). Of late, Chinese investment in Nepal’s hydropower sector is dwindling, while India has emerged as a dominant player. The Chinese side has been known to express displeasure with the Nepali officials over India’s dominance in Nepal’s energy sector.

For China, the implementation of Belt and Road Initiative (BRI) in Nepal is the key priority area. But there is an unease in Nepal regarding the BRI after China listed Pokhara International Airport as part of the BRI. Nepali ministers have time and again dismissed the Chinese claim, saying that Nepal has yet to execute any project under the BRI.

Officials say the first priority of Prime Minister Dahal, while talking with Beijing officials, will be to seek China’s concrete position on the BRI.

Prime Minister Dahal has not spoken much about the BRI in recent days. Previously, he used to say that China should help construct at least one major project as a gift under the BRI.

Tanka Karki, former Nepali ambassador to China, says the prime minister’s imminent China visit should be focused on the implementation of past agreements signed between two countries including the BRI. If there are any problems regarding the implementation of the agreements, Dahal should communicate what those problems are.

The Chinese side has also been stressing the need of implementing the past agreements signed between the two countries during Chinese President Xi Jinping’s Nepal visit. But the coalition partners are not on the same page when it comes to engaging with China.

Along with the BRI, China has also been urging Nepal to make commitments on the Global Security Initiative, Global Development Initiative (GDI) and Global Civilization Initiative (GCI). Experts say the prime minister and government officials should clearly communicate their concerns and positions on these latest initiatives of China, and not rush into signing new agreements.

There are a lot of agreements from which Nepal can take benefit, says Karki, but the focus should be on their implementation. He is of the view that there is no need of signing new agreements with China when the past agreements have not moved forward.

Upendra Gautam, general secretary of China Study Center, says Prime Minister Dahal must take China into confidence when it comes to securing Beijing’s core interests, including bilateral territorial security mechanisms for stable trade, transit, transport, agriculture and cultural connectivity.

Nepal’s longstanding and generally stable ties with China offers Prime Minister Dahal a rare historic opportunity to prove that he is not just a tool in the fractious South Asian politics dominated by India-China rivalry.

If the prime minister plays his cards right, he can steer Nepal toward the path of prosperity by establishing mutually cooperative and highly reciprocal relationships with immediate neighbors.

Nepal’s Ambassador to China Bishnu Pukar Shrestha says progress on rail and roadway connectivity are the key priority areas of Nepal which are the bedrock of boosting bilateral trade and investment.

During Prime Minister Dahal’s China visit, Shrestha says Nepal will request the Chinese side to expedite the China-funded development projects in Nepal.

He adds signing power trade agreements, increasing Chinese investment and resolving trade bottlenecks are also on the list of priorities.

Key points for PM Dahal’s China trip