PM Oli reaches Beijing with ‘Nepali version’ of BRI

Prime Minister KP Sharma Oli began his four-day official visit to Beijing on Monday at the invitation of his Chinese counterpart, Premier Li Qiang. This marks Oli’s first bilateral foreign trip since assuming office for the third time in July, signaling a significant step in Nepal-China relations.

During the visit, Oli is set to meet Chinese President Xi Jinping and hold bilateral talks with Premier Li. Discussions will focus on mutual interests, including connectivity, infrastructure development, trade and transit, energy cooperation, tourism, and fostering people-to-people ties, according to Nepal’s Ministry of Foreign Affairs.

The two countries are also expected to sign some key agreements. Notably, China will provide a $20mn grant to Nepal, alongside a new bilateral development cooperation framework to be implemented from 2025 to 2029. Projects such as the Tokha-Khahare Tunnel Road, the Special Economic Zone at the Korala border, and the feasibility study for a cross-border railway line are likely to advance, Information and Technology Minister Prithvi Subba Gurung said. Oli has chosen China over India as his initial foreign destination, breaking the longstanding practice of Nepali prime ministers beginning their tenure with a visit to India. 

Oli’s choice to visit China first rather than India is “not unexpected, but rather a reflection of the increasing policy choices of South Asian countries,” Lin Minwang, a deputy director of the Center for South Asian Studies at Fudan University, told the Global Times on Sunday. He further noted after coming to power, Maldives President Mohamed Muizzu also chose to visit China first instead of India, and other South Asian countries are actively developing relations with China. “This reflects changes in Nepal's domestic politics and its policy toward China.”

Besides choosing China for his first official trip, Oli’s visit is drawing attention for other reasons as well. One of them is China’s Belt and Road Initiative (BRI). 

A task force from the two parties has revised the draft of the BRI implementation plan initially proposed by the Chinese side in 2020. The document, now titled Framework for Cooperation instead of BRI Implementation Plan, has been sent to the Chinese side for initial negotiations, though it is yet to be finalized.

This trip comes at a time when China is pushing to strengthen BRI cooperation. There are concerns over what sort of agreement will be signed with Beijing on BRI on which India and western countries are cautioning Nepal to maintain transparency and avoid possible debt burden. Domestically, there are also suspicions that the coalition of Nepali Congress and CPN-UML could crack, as two parties have divergent views on how to deal with China. Oli has a history of fostering strategic agreements with China, including the landmark Transit and Transport Treaty of 2016. 

China’s Foreign Ministry Spokesperson, Mao Ning, highlighted the importance of Oli’s visit in strengthening bilateral ties. “Despite changing international and regional dynamics, China-Nepal relations have grown steadily over the past 69 years, exemplifying equality and win-win cooperation between countries of different sizes,” she said. Mao emphasized deepening strategic trust, advancing high-quality BRI cooperation, and achieving progress in the China-Nepal partnership.