A great wall divides NC and UML

China’s Belt and Road Initiative (BRI) has deepened the rift between coalition partners as Prime Minister KP Sharma Oli’s upcoming visit to China draws nearer. Leaders from both parties have become more outspoken, publicly presenting their positions. Former Foreign Minister Pradeep Kumar Gyawali criticized the Nepali Congress (NC) for creating unnecessary obstacles in implementing the BRI.

He remarked, “They (NC leaders) signed the BRI framework agreements but now they are complicating the issue.” This statement highlights the growing divide between the two parties.

On Tuesday, Prime Minister Oli held discussions with NC President Sher Bahadur Deuba on the same issue. Gyawali remarked, “Obviously, there are differences between the two parties, but we will resolve them before Oli’s visit.” 

PM Oli is keen on signing the BRI implementation plan prepared last year, but the NC opposes it. Similarly, the UML supports finalizing certain BRI projects, while the NC strongly opposes them. NC leader Prakash Sharan Mahat, who was foreign minister when the BRI framework was signed in 2017, stated that the NC would accept only grants, not loans, under the BRI. He added, “It’s fine if China provides grants for BRI projects, but there is no need for loans. China has not honored its commitments to Nepal regarding grants.”

Foreign Minister Arzu Rana Deuba will visit China at the end of this month to prepare for PM Oli’s trip. Her visit will determine the future of the BRI’s progress. Shortly after taking office, Rana emphasized that more public discussions are needed before signing any agreement. UML Senior Vice-chair Ishwar Pokhrel is also in China for bilateral talks. The coalition has tasked Minister Rana with making preparations after consulting with leaders from both NC and UML.

The two countries are working on a draft implementation plan, but NC and UML remain divided. China is leveraging its influence over Nepal’s communist parties to facilitate BRI implementation. If the rift between NC and UML widens further, it could threaten the government’s stability. While the two parties have differences on domestic issues, they have managed to coexist, but tensions over the BRI are likely to escalate. NC leaders cite the example of the Pokhara International Airport to argue that infrastructure projects funded by Chinese loans are not economically viable.