Photo: S Paul Kapur, who has been picked by the Donald Trump administration for the key post of Secretary of State for South and Central Asian Affairs

It has been nearly six months since Donald Trump was inaugurated as the 47th President of the United States. Since then, he has issued dozens of executive orders that have significantly impacted America’s relationship with the rest of the world.

The Trump administration’s decision to shut down the US Agency for International Development (USAID) has had major repercussions in Nepal, leading to the cancellation of dozens of projects. Similarly, two projects under the Millennium Challenge Corporation (MCC) in Nepal remain in limbo as the new administration has yet to make a final decision.

Engagement between the two countries has been minimal, particularly after the retirement of Assistant Secretary of State for South Asian Affairs Donald Lu just before Trump’s inauguration—a position that remains unfilled.

Now, the Trump administration has nominated S Paul Kapur, who is currently undergoing a congressional hearing and is expected to soon take charge of South Asian affairs. A close examination of speeches by senior US officials, including the Secretary of State and Secretary of Defense, as well as Kapur’s statements before the Senate Foreign Relations Committee, suggests that the “China factor” will heavily influence Trump’s South Asia policy—including toward Nepal. 

In fact, countering China has emerged as the Trump administration’s primary focus across Asia. Born in New Delhi to an Indian father and an American mother, Kapur is regarded as a South Asia expert. He has authored several books on the region’s security dynamics and US policy. From 2020-2021, Kapur served on the State Department’s Policy Planning Staff, working on issues related to South and Central Asia, Indo-Pacific strategy, and US-India relations. Previously, he taught at Claremont McKenna College, and was a visiting professor at Stanford University.

During his hearing, he stated: “The United States’ relationships with the countries of South and Central Asia hold great promise. With effective policy, they can flourish and enable us to achieve Secretary Rubio’s goal of making the United States safer, stronger, and more prosperous.”

He emphasized shared US-India interests, including ensuring a free and open Indo-Pacific not dominated by China, expanding bilateral trade, fostering technology sharing, and securing energy access. He also highlighted the strategic importance of Nepal, Sri Lanka, Bangladesh, the Maldives and Bhutan for regional stability, noting Sri Lanka and the Maldives’ critical locations along major trade routes and Bangladesh’s economic significance. “If confirmed, I will advocate for enhanced US cooperation with these nations to bolster security, counterbalance China’s influence, and expand trade,” he said.

In a striking statement at last week’s Shangri-La Dialogue in Singapore, US Defense Secretary Pete Hegseth signaled a more confrontational stance toward Beijing, unsettling many Asian capitals. “As our allies share the burden, we can increase our focus on the Indo-Pacific: our priority theater,” he declared, stressing that America’s security and prosperity are intertwined with those of its allies. “We share your vision of peace and stability, of prosperity and security, and we are here to stay,” he added.

Since the new administration took office, there have been no high-level US visits to Nepal. While some senior officials have traveled to Kathmandu, these trips were kept low-key. However, military collaboration between the Nepali Army and the US Army continues on a regular basis.

Meanwhile,  Secretary of State Marco Rubio ordered US embassies around the world on Tuesday to move ahead with a directive to fire all remaining staffers with the US Agency for International Development. He said the State Department will take over USAID’s foreign assistance programs by Monday, according to the AP news agency. 

 

The termination of all remaining USAID staffers abroad is one of the last steps in the destruction of the US aid agency and the firing of its more than 10,000 staffers and contractors by the Trump administration and Elon Musk’s Department of Government Efficiency, or DOGE, according to AP.  They had made USAID one of their first targets for elimination.