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A high-level Chinese government delegation is visiting Nepal at the invitation of the Ministry of Home Affairs. The five-member team under Ye Hanbing, Vice-governor of Sichuan Province and Commissioner of the Public Security Department of the province, is arriving in Nepal on Tuesday morning. The Ministry of Foreign Affairs and the Ministry of Home Affairs are coordinating the visit.

According to sources, Hanbing’s team will meet with the Foreign Minister, Home Minister, Home Secretary, and other high-ranking officials. Home ministry sources indicate that discussions on matters of mutual and security interest will take place during the meeting. The visiting team includes Deng Hua, Zheng Xiaoqing, Zhong Ke, and Thang Jianxin. 

Of late, there has been a surge in high-level visits from China.

Immediately following Hanbing’s visit, a delegation under Chinese Vice Foreign Minister Sun Weidong will arrive in Nepal. According to the foreign ministry, Sun's team will participate in the 16th round of the Nepal-China Diplomatic Consultation Mechanism meeting. The foreign ministry of Foreign Affairs is making preparations for this visit.

Recently, China has intensified its activities in Pokhara and Lumbini, in addition to Kathmandu. For the Chinese New Year, the Chinese Embassy in Nepal organized various programs in Pokhara and Lumbini. Just last week, a high-ranking Chinese official visited Lumbini and Kathmandu. Chen Ruifeng, Chinese Minister for the National Religious and Cultural Affairs Administration, visited Lumbini last Wednesday, accompanied by Chinese Ambassador to Nepal Chen Song, Huang Zhihui, director-general of the General Bureau of National Religious Affairs Administration, and Venerable Master Yin Shun, a member of the Chinese People’s Political Consultative Conference and Vice-chairman of the Buddhist Association of China.

Minister Chen laid the foundation stone for a structure to be built next to the Chinese monastery in Lumbini. Participants in the foundation-laying ceremony included Yin Shun, Ambassador Song, Lumbini Development Trust (LDT) Vice-chairperson Lhyarkal Lama, Registrar of Lumbini Buddhist University Tilakram Acharya, and Deputy Mayor of Lumbini Sanskritik Municipality Kalpana Harijan.

Minister Chen also visited the office of Vice-chair Lama at the LDT. He stated that his visit aimed to promote tourism in Lumbini and sustain cultural relations between Nepal and China. Minister Chen toured the Maya Devi Temple, Ashoka Pillar, Pushkarani Pond, and Shanti Deep to gather information about Lumbini.

Also, Vice-chair of the Chinese People’s Political Consultative Conference (CPPCC), Bateer, paid a courtesy call on Prime Minister Pushpa Kamal Dahal on Sunday. During the meeting, they discussed bilateral relations, mutual cooperation, and the implementation of various agreements between the two countries. Prime Minister Dahal expressed satisfaction over the gradual implementation of the agreements reached during his recent visit to China. He thanked the Chinese government for operationalizing the traditional 14 checkpoints along the Nepal-China border and for gradually implementing important agreements.

The Armed Police Force established a Border Out Post at Samdo in Chumanubri of Gorkha district bordering China on Sunday.

With this, the number of BOPs established towards China has reached 10.

The BOP, established under APF company No. 29 of Gorkha, is 164 km north from Gorkha Bazaar, the district headquarters.

The BOP established in Nepal and China border will rescue people trapped in snowfall and avalanches, curb illegal smuggling, deal with criminal activities in the border areas and monitor border pillars and areas.

Ruyela border crossing is around 15 km from the BOP established at the elevation of 3, 875 meters from sea level.

Earlier, the APF had established BOP in nine places towards Chinese side including Tinkar of Darchula, Hilsa of Humla, Nechung of Mustang, Timure of Rasuwa, Tatopani and Gumba of Sindhupalchowk, Lamabagar of Dolakha, Kimathanka of Rasuwa and Olangchung Gola of Taplejung.

So far, Nepal has established 244 BOPs towards the Indian border and 10 towards Chinese border.

In 2018, a visit by then China’s Ambassador Yu Hong to Janakpur, the capital of Madhes Province, raised eyebrows. Usually, ambassadors travel for events or for a holiday, but this visit felt different. Unlike typical ambassadorial trips, Yu’s focused on distributing disaster relief under China Aid. This sparked curiosity about China’s growing interest in Nepal’s Tarai region, which traditionally has closer ties with India due to open borders and constant movement of people and goods. Hong’s visit to Janakpur was a sign that China was changing its approach.

More recently in May, current Chinese Ambassador to Nepal Chen Song visited Madhes again.  He attended the launch of a new program in Barahathawa Municipality called ‘Support for schools and communities in remote areas for Pandemic Prevention and Green Recovery’.  This China Aid initiative, partnered with the UNDP, will benefit 15,000 students and 7,500 families in Sarlahi and Rautahat districts.

China has initiated support to schools and communities in Madhes Province of Nepal, which is quite rare. This move was hugely welcomed by the local communities, which was witnessed in the way the Chinese team was greeted in the area. During his visit, Ambassador Song also announced two major projects of clean drinking water and solar light in the villages starting right from Madhes Province. 

From the provincial government representatives to local government heads, there was a unified voice that China’s support could be instrumental. Provincial Minister for Physical Infrastructures and Development Saroj Kumar Yadav thanked China for selecting Madhes Province and establishing new model projects, while Barahathawa Mayor Kalpana Kumari Katuwal said that the support could bring positive changes in the lives of the general public. 

The ambassador and his team received similar welcoming gestures from the school and community representatives. Some even suggested opening Chinese language centers or establishing sister-city relations among Tarai towns and Chinese cities.

This wasn’t China’s first project in Madhes though. In 2018, China Aid supported 31,800 flood-affected families in seven Tarai districts, including Sarlahi, Dhanusha, Mahottari, Rautahat, and Parsa, through the Post-Flood Recovery Program. Similarly, a Chinese NGO helped establish over 100 wash stations and isolation centers during the Covid-19 pandemic. 

Though the Tarai has no language or cultural symmetry with China as it has with India, it is noteworthy that many students from the region have been studying in Chinese universities under various scholarship programs. These scholarship programs, along with development and disaster relief programs, highlight China's growing interest in the region.

Asked whether there is a gap between China and Madhes, Ambassador Song denied there was one. He said China is willing to support Madhes just like any other provinces of Nepal. According to him, China sees potential in agriculture and industry, offering support in health and education. 

“I think Madhes Province is very promising in these two areas. It needs more help, development and cooperation. That’s my impression,” he said.

His visit to schools suggests a shift towards public diplomacy, building connections with the people of Tarai. 

There are already signs of Chinese economic interest in the region too. Chinese companies have set up small-scale industries in Bara. The Chinese ambassador and his team visited a construction site under the Package 5 of the Kathmandu-Tarai/Madhes Fast Track, which is assigned to CMCE/SDLQ JV, China, and thanked the contractors for the substantial progress. 

These latest developments, along with Song’s positive remarks on Madhes’ potential, indicate a more active Chinese role in the future.

It is clear that China is no longer content with its traditional approach to diplomacy, that it is gradually coming out from the G2G diplomatic engagements and trying to put people-to-people relationship at the center of its diplomacy. 

While Nepal strives to maintain neutrality in its relations with India and China, Madhes Province can benefit from development assistance offered by both neighbors. China’s cautious and pragmatic approach seems to be winning hearts, and the future holds promise for deeper cooperation between China and Madhes.

The author is a freelance journalist

China Aid has joined hands with United Nations Development Program (UNDP) to support schools and communities in Madhesh Province of Nepal.

As part of the assistance, a special project to “Support for schools and communities in remote areas for Pandemic Prevention and Green Recovery” was unveiled in Barahathawa Municipality in Sarlahi district on Thursday.

The project will support 25 government schools in Sarlahi and Rautahat districts, benefiting 15,000 students, and 7500 families.

Addressing the function, Provincial Minister for Physical Infrastructures and Development Saroj Kumar Yadav expressed gratitude for selecting Madhesh Province and establishing new model projects in the region.

Stating that mega development projects are being developed in China, Yadav said that it could have a huge significance for Nepal’s development and prosperity.

On the occasion, Chinese Ambassador to Nepal Chen Song remarked that the project would create safe and healthy learning environment for students and communities against extreme weather events, disasters and extreme shocks.

“In 2022, the Ministerial Meeting of the Group of Friends of the Global Development Initiative released the first batch of 50 projects of GDI projects pool, in which this project was included,” Song said, adding that the projects of GDI have been creating huge contributions to Nepal and the world.

He also announced two major projects including ‘clean drinking water’ and ‘lightening the villages’ starting from Madhesh Province.

In response, Mayor of Barahathawa Municipality Kalpana Kumari Katuwal remarked that the support would be highly beneficial for the local communities.

"I believe this is a new beginning, and together with the partners, we can bring bright changes in the lives of general public, mostly to poor and backward communities.”

Jullien Chevillard, UNDP Nepal’s Deputy Resident Representative, stated that investment in education and green recovery is crucial to address the impacts of climate change, and to achieve the Sustainable Development Goals.

The latest project is implemented by China Foundation for Rural Development(CFRD), while was researched by World Education.

Wu Peng, Director of International Development Department of CFRD, informed that the organization has supported more than 60 districts across 7 Provinces, directly benefitting over a half million population.

“With joint partnerships, we want to help communities to be restored from pandemic and disasters, and help Nepali public have a better life,” Peng remarked.

Under the latest project, the schools will be provided with necessary equipments and goods like desks, tables and book racks to enhance learning environment, students with stationaries package, and communities with essential items like mats and improved stoves.

A neurosurgeon from the 15th batch of China’s medical aid team to Nepal is helping strengthen the diagnostic and therapeutic capabilities for brain tumor patients in Nepal. Dr Yang, who is affiliated with the Neurosurgery Department at the Second Hospital of Hebei Medical University, is not just a renowned medical professional but also a passionate ambassador of health and friendship between China and Nepal. 

Working closely with his counterpart, Dr Benju, at the BP Koirala Memorial Cancer Hospital, Dr Yang Jiankai has helped redefine the neurosurgical medicine landscape in Nepal. His dedication to both his field of expertise and the larger cause of international cooperation is truly commendable. As a neurosurgeon, he possesses extensive knowledge and skills in treating a wide range of neurological conditions. His surgical expertise and clinical acumen have saved countless lives and improved the quality of life for many patients. 

The seasoned Chinese neurosurgeon’s stay in Nepal has been a testament to his dedication, not just to his medical expertise but to his understanding that elevating the standards of diagnosis and treatment for brain tumor patients necessitates not just technical exchanges but also cultural and ideological integrations. Through a multifaceted approach, he has empowered local medical professionals with advanced knowledge and skills.

He frequently invites neurosurgeons from China and organizes seminars where health professionals from the two countries hold discussions on the latest advancements in brain tumor diagnosis and treatment. Dr Yang’s hands-on guidance during surgical procedures and patient consultations has provided invaluable opportunities for Nepali doctors to witness and appreciate the Chinese neurosurgical techniques firsthand. His vision extends beyond the confines of the operating room. He has facilitated opportunities for Nepali doctors to visit health facilities in China, fostering stronger bonds of friendship and collaboration. 

In September last year, Dr Benju who was participating in intellectual exchanges in Shandong, China, expressed keen interest in observing neurosurgical procedures in Chinese hospitals. Recognizing this as a valuable opportunity to enhance Dr Benju’s understanding of Chinese medical technology, Dr Yang reached out to Principal Li Gang and Neurosurgery Director Ni Shilei of Qilu Hospital of Shandong University. He arranged for Dr Benju to observe several neurosurgical surgeries. 

Commenting on the visit, Dr Benju said he was astounded by China’s rapid progress in neurosurgery. “Many of the neurosurgical procedures were entirely novel to me. I realized there is a vast array of neurosurgical techniques to master, and I sincerely hope for more opportunities to engage in exchanges and learning at Chinese hospitals,” he added. Moreover, Dr Yang has also been leading joint scientific research endeavors on neurosurgery between China and Nepal.  

Through his multidimensional approach, Dr Yang has not only enhanced the diagnostic and therapeutic capabilities of Nepalese doctors in treating brain tumor patients but has also enriched himself with invaluable experiences and insights from his Nepali counterparts. Dr Yang’s vision is even broader. He believes that health is a shared concern of all nations, and cooperation in this field can greatly strengthen the bonds of friendship and mutual understanding between countries. With this belief, he has made significant contributions to promoting health cooperation between China and Nepal. 

He has participated in numerous medical missions and exchange programs with Nepal, sharing his expertise and learning from his Nepalese colleagues. He has also advocated for increased cooperation in areas such as training, research, and patient care, helping to bridge the gap in medical resources and capabilities between the two countries. His interactions with Nepali doctors, patients, and community members have not only strengthened his professional network but also deepened his understanding and appreciation of Nepalis culture and society.

Currently, we stand at the crossroads of shifting global alliances, new forms of global power competition, polarity among the traditional and emerging power centers, and the rise of multi-polar world order. The Indo-Pacific region is increasingly becoming the hotspot of the global power contest. South Asia, as one of the growing economic centers, with one-fourth of world population, and the unprecedented rise of China and India, has become the epicenter of global power rivalry.

In this broader geopolitical landscape, Nepal, situated between these two major rivals, is dragged into the power contest of its neighbors. Nepal should carefully navigate the interest of foreign powers and should be able to leverage its geo-political position to realize its agenda of prosperity. Although it is a challenging task, it provides us with ample opportunities.

Formulating proactive foreign policy and smart diplomatic dealing is essential to maximize our national interests. We are clear on isolating ourselves from any strategic, security or military alliances, but we welcome development partnerships that do not undermine our national interests. Now coming to the topic of today’s discussion, we see BRI as an opportunity to materialize our developmental goals, but there are specific issues of concern with the BRI.

China is a long-standing bilateral partner, and one of the countries with strong historic trade, commerce and people-to-people ties. We envision deepening ties with China on mutually beneficial terms. Nepal became a part of China’s Belt and Road Initiative in 2017.

The initial motivation for joining BRI was the prospect of trade and connectivity diversification. However, seven years after signing the MoU, there has been no significant progress on BRI. As the chairman of the International Relations and Tourism Committee of the parliament, I advocate partnerships with any countries to realize our investment needs, but the partnership should be transparent and it should not undermine our sovereignty and should be a win-win situation. With the growing pressure for the BRI implementation plan agreement, we should first have a comprehensive discussion on the provisions of the BRI MoU signed in 2017, which is not yet disclosed by both the governments. The MoU should be brought and discussed in the parliament. And then, we can move onward with the discussion on implementation modality of the projects under the BRI. For this there is a need for national consensus and wider discussion on the modality of partnership under BRI. We have a lot to learn from the global experience of the BRI.

We should be clear on the stance of the financial modality to fund the BRI projects. We cannot simply accept the commercial loans with high interest rates from China with shorter payback periods. Our negotiation with China should focus on grants and concessional loans with interest rates at par with other multilateral financial institutions and should not have any strings attached. The selection of projects under the BRI should be based on comprehensive feasibility study and cost benefit analysis. We should refrain from any projects without economic viability.

There are also concerns on procurement process, financial audit of the investments and construction modality of projects. The projects should be open for bidding to all interested companies globally, Nepal should have the right to conduct financial audits of the projects under BRI. Meanwhile, projects should also procure local resources, manpower and should be able to transfer technology to ensure sustainability of the projects. At the same time, we should consider the environmental and social sustainability of the projects. To ensure this, there should be wider consultations with the multiple stakeholders and detailed study to ensure projects are environmentally, socially viable and do not underestimate the rights of local ethnic communities. I am hopeful Nepal could benefit from the partnership under BRI if China is willing to accommodate our concerns and negotiate on mutually favorable terms. I also urge the Nepal government to clarify the current status of negotiation on BRI and developments in the process. 

The author is head of parliament’s international affairs committee

Nepali citizens visiting China will get a free entry permit (visa). Now, the Nepalis will not have to pay for the visa.

The Chinese Embassy informed that the entry permits for the Nepalis visiting China have been made free of cost. However, certain service charges will be levied.

According to the Chinese Embassy, this rule will come into effect from May 1.

The Nepali Embassy said that the free visa system has been implemented to further strengthen the relations between Nepal and China.

The Nepal government, however, has been providing 150 days free visa to the Chinese nationals.

The Chinese Embassy said that the visa fee will not be charged for single and multiple entry.

The Embassy further informed that no fee will be charged even for multiple entry permits of six months and one year.

The 17th Nepal-China (Tibet) Economic and Trade Fair is going to be held in Kathmandu on April 29.

The trade fair is held every two years in one another country as per the agreement reached between the government of Nepal and the commerce department of the Tibet Autonomous Region of China in 1990.

According to the Trade and Export Promotion Center, the main objective of the fair is to further expand the bilateral economic and trade relations between Nepal and China (Tibet).

Around 125 businesspersons including a five-member high-level delegation will participate in the fair.  The official delegation will be led by the Vice Chair of the Tibet Autonomous Region Government of China, Long Fukuan.

There will be 50 exhibition stalls on behalf of China (Tibet) in the fair, including herbs, agricultural products, modern agricultural tools, tea, electrical appliances, household appliances, carpets, beverages, handicrafts, incense, two-wheelers, three-wheelers, four-wheelers, electric vehicles and beauty products.

Likewise, there will be 15 exhibition stalls on behalf of Nepal, including herbs, coffee, tea, handicrafts/carpentry, metalwork, carpet, pashmina and other products.

The fair will be open from 10 am to 6 pm and entry is free.

Located between China and India, Nepal ranks 108th out of 180 countries in the Transparency International’s corruption perceptions index (CPI), a very unenviable position compared to neighbors like Bhutan (26th), the Maldives (93rd) and India (93rd). What offers us a little bit of solace is a relatively better position than other neighbors, namely Sri Lanka (115th), Pakistan (133rd), Bangladesh (149th) and Afghanistan (162nd).

In my reading, a lack of transparency and open-access data policy is mainly to blame for a poor showing vis-a-vis CPI on the part of Nepal, which in 2015 became a federal secular democratic republic, a political order that is supposed to have democracy, transparency, and access to information at its core. 

Access to information is vital for a smooth operation of this political order because it helps not only to improve public service delivery but also increases public trust in government bodies. 

That is why the Constitution of Nepal has upheld the right to information (RTI), with Article 27 of the Charter declaring RTI as a fundamental right of every citizen of Nepal. 

With the aim of guaranteeing RTI, the government introduced the Right to Information Act 2007, set up a National Information Commission (NIC) in 2008, regarded as a very important step in promoting transparency and corruption in Nepal, and introduced some supporting rules in 2009. Section 4 of the Act has provisioned respect for and protection of the citizens’ right to information through classification and updation of information and dissemination of the same to the public, envisioning citizens’ ‘simple and easy’ access to information. Whereas Section 5 has a provision “to keep the information updated for at least 20 years.” 

Per the Act, both government and non-government entities must update information every three months and disclose the information even when the public does not seek it. 

Despite the open open-access data policy, none of the governmental entities (including the ministries), barring a few exceptions, have duly followed the RTI Act and other relevant rules. 

It is common for government officials to cover up corruption and malfeasance by hiding crucial information, including details of public officials' property, revenue losses, tax evasion and reports on suspicious financial transactions. 

Most of the government entities have appointed an information officer each for dissemination of information of public importance. But most of them are not very cooperative when it comes to providing data and dilly-dallying is quite common among them. 

This tendency to deny RTI is mainly due to 1) a culture of secrecy within government bodies, 2) lax implementation of RTI Act and its rules, and 3) no strict punishment for offices and personnel tasked with categorizing data and publishing them. 

It gives rise to some important questions: Are these entities functioning as per relevant rules and regulations? If  the officers have performed their tasks accordingly, then why are they hesitating to share data with the public?  

Does this unwillingness to share data reflect the concerned personnel’s vested interests? 

Whatever the reason behind this, correction measures should be taken and data made available to the people. In the absence of an open-access data policy and data-sharing mechanisms, it is impossible to verify whether the concerned personnel are discharging their duties in accordance with relevant laws or not. 

Following interventions are necessary to ensure the public’s easy access to data in Nepal: 

• Strict implementation of RTI Act 2007 and its Rules 2009 
• Implementation of new concepts in governance such as New Public Services and New Public Governance
• Activities aimed at raising awareness among the public to seek data from both government and non-government entities 
• Promotion of the culture of information dissemination and transparency through disruption of the culture of secrecy 
• Comprehensive research on identifying the impediments to open-access data-sharing systems, ways to remove the hurdles and implement the identified correction measures 

 The author, a veterinary officer at the Department of Livestock Services, is a graduate of the University of Cambridge

Over the past few years, China has achieved political, economic and diplomatic feats. No apparent observation, perhaps, can emasculate China’s global march—it is rising so gracefully, smoothly and enormously. China is most likely to grow from being a superpower to a mega-power. But in the evolving international system, it is anticipated to play rational, responsible and equable roles.

The most sensible foreign policy course of action for Nepal at this point of unparalleled rise of its immediate neighbor would be to strategically align with it by building mutual trust, while maintaining a delicate balance with another neighbor. Nonetheless, Nepal ought to maintain a pragmatic economic and security framework through increased mutual trust, strategic partnerships and technological cooperation with both the neighbors. Nepal’s economic, developmental and security architecture, despite many geopolitical challenges, should be guided by a sensible geopolitical assessment and wider techno-economic cooperation with immediate neighbors and other powers.

Over the past few years, Nepal has found itself in the midst of a tug-of-war among three major global powers: India, China, and the US. Each of these countries are vying for influence in Nepal’s economic, military, ideological and technological spheres.

Let’s begin with the US. The Biden administration in the US has made advancing democracy one of its key global priorities. In South Asia, Nepal appears to be in the high priority of the US democracy projects. The US has been inviting Nepal’s prime minister to its annual democracy summit. Both communist and non-communist prime ministers have attended the summit. The US is making efforts to counterbalance the influence of the Chinese Communist Party in Nepal and uphold democratic values in the region. In the meantime, the US is equally concerned about the influence of India’s Bharatiya Janata Party (BJP) which is pushing for the restoration of Hindu state in Nepal. A US document says: “The Nepali political class’s penchant for balancing relations with its large neighbors India and the People’s Republic of China (PRC) renders security cooperation, including with the United States, prone to political interference.” 

Despite claims that it does not export its communist ideology, China has been promoting its political model in other countries. Under the guise of showcasing its achievements, China has been exporting its ideology to South Asian countries. Chinese leaders are urging their Nepali counterparts, particularly those aligned with the communist ideology, to embrace the Chinese model. Every year, China invites a large number of Nepali communist leaders to its cities to showcase its development model. Of late, Nepali leaders have started saying that Nepal can replicate the same model which reflects a growing acceptance of the Chinese  model within the country.

Though India and the US are on similar pages on a range of issues, the two powers have divergent views about the democratic values in South Asia. India, on its part, is sending conflicting signals on the ideological front. While the Indian government seems committed to uphold democracy, secularism and inclusive constitution in Nepal, the ruling BJP harbors reservations about Nepal’s 2015 constitution, which, it perceives, is imbued with Western values. The BJP’s parent organization, the Rashtriya Swayamsevak Sangh, is reaching out across the political parties and the general people with Hindu-centric agendas. The BJP believes it can reduce Western influence on Nepal, dismantle secularism and restore Hindus state through such activities. Such activities are already polarizing Nepal’s political fabric.

In addition to ideological battles, Nepal is grappling with strategic challenges posed by major powers. China’s Belt and Road Initiative (BRI) and its insistence on the One China policy dominate all its engagements with Nepal. Likewise, China’s Global Security Initiatives (GSI) and Global Civilizational Initiatives (GCI) and Global Development initiative (GDI) are getting more prominence over economic issues. Nepal has consistently expressed its commitment to One China policy for over 50 years now. Still, China does not seem convinced and seeks reaffirmation on One China policy every time.

A press statement issued after Prime Minister Pushpa Kamal Dahal's visit to China last September also reiterated Nepal's firm stance against Taiwan Independence. His new Foreign Minister Narayan Kaji Shrestha echoed the same sentiment during his visit to China last month. Although China keeps emphasizing on the Belt and Road Initiative (BRI) in various meetings, tangible progress on infrastructure development under the BRI umbrella has not materialized yet. Government officials, politicians, and foreign policy analysts say that Nepal needs to capitalize on China's economic growth. However, this aspiration has yet to materialize due to the significant focus that both countries are placing on strategic concerns.

While Chinese investment in Nepal is on the rise and cooperation between the two nations has expanded in recent years, substantial investment projects that could catalyze economic growth remain elusive. Instead, Nepal’s attention is primarily directed towards ensuring that its territory is not used for anti-China activities. Regarding Chinese investment in Nepal, there have been occasional complaints from the Chinese side regarding obstacles faced by its investors.

Nepal engaged in a four-year debate on whether to accept the $500m support from the Millennium Challenge Corporation (MCC) of the US government. The MCC projects are finally into implementation. However, the project is not gaining the desired pace. Many attribute the slow progress to the government’s lackluster commitment to these projects. This tepid response was partly influenced by China’s strong opposition to the projects which labeled it as part of the Indo-Pacific Strategy (IPS). Nepali politicians, bureaucrats and experts continue to struggle in comprehending the US policy towards Nepal in the context of the IPS. Following discussions on the IPS, attention in Nepal shifted on the State Partnership Program (SPP) of the US government.

Under domestic pressure, the government led by Sher Bahadur Deuba of the Nepali Congress wrote a letter to the US government stating that Nepal won’t be a part of the SPP. Of late, there has been a notable increase in interest from US investors looking to invest in Nepal. However, Nepal has yet to effectively address this interest despite a substantial increase in US assistance through USAID.

All this shows that Nepal has already fallen into the geopolitical trap. Nepal is not seeing much investments in priority sectors as major powers are prioritizing their security and strategic interests. Though Nepal is pushing for more economic collaborations, strategic issues are dominating the bilateral negotiations and public discourse. Nepal’s current key priorities are economic recovery, minimizing the impacts of climate change and creating jobs but due to the geopolitical tensions these issues are getting a backseat in the engagement with major powers.

Nepal has struggled to take a clear stance on initiatives like the IPS, BRI, and other strategic endeavors. While managing these challenges should be the top priority of the government, the country is marred by internal political instability. Geopolitics is gradually creating rifts within Nepali society. Nepal needs to make concerted efforts to mitigate internal divisions and chart a path forward that safeguards Nepal’s interests amidst global power struggles.

Lawmakers have demanded the prompt resumption of Nepal-China transit points closed with the outbreak of the COVID-19 pandemic.

Airing views in the 'zero hour' of the House of Representatives (HoR) meeting today, NC lawmaker Dilendra Prasad Badu expressed satisfaction over the reports that during Deputy Prime Minister and Foreign Minister Narayan Kaji Shrestha's recent visit to China, the two sides exchanged views on reopening the transit points along the Nepal-China border including Tinker in Darchula.

He said during the Prime Minister's China visit in the past, it was reported that the transit points would be resumed but this has not happened so far. "The Foreign Minister should clarify it," he asserted.

Thakur Prasad Gaire of CPN-UML urged the government to conserve Palpa's historic Rani Mahal (Palace) while Tara Lama Tamang demanded grants to sugarcane farmers.

Pradip Paudel of Nepali Congress drew the government's attention towards the issue of the server down in Tribhuvan International Airport. It was Badri Pandey from the same party who expressed his concerns over problems being faced by Bajura people in the aftermath of a landslide and a delay in constructing a bridge in Martadi. 

Devendra Poudel of CPN (Maoist Center) urged the government to establish the administration office at Galkot of Baglung to provide government services near to the locality of people who face challenges to visit the district headquarters to acquire administrative services.

Dhawal Shumsher JB Rana, Basudev Ghimire, Bindhyabasini Kansakar, Tejulal Chaudhary, Damodar Poudel Bairagi, Durga Rai, Pradip Yadav, Prabhu Hajara, Binita Kathayat, Dhruba Bahadur Pradhan, Nagina Yadav, Nirmala Koirala, Narayan Prasad Acharya, Nisha Dangi, Purna Bahadur Gharti Magar, Pratima Gautam, Pratiksha Mukhiya, Dikpal Kumari Shahi, Deepak Giri, Deepa Sharma and Dr Toshima Karki raised contemporary issues.

Deputy Prime Minister and Minister for Foreign Affairs Narayan Kaji Shrestha is paying an official visit to China from March 24 to April 1 at the invitation of his Chinese counterpart Wang Yi.

This visit marks the first significant diplomatic engagement by a senior minister since the formation of a new coalition government on March 4. Shrestha’s transition from the home ministry to the foreign affairs portfolio underscores the shifting dynamics within the government. In addition to bilateral discussions with his Chinese counterpart, Shrestha, a prominent Maoist leader, is scheduled to hold meetings with top officials and leaders of the Chinese Communist Party.

Given lingering suspicions and allegations surrounding China’s role in orchestrating the recent political realignment in Nepal, Shrestha’s visit carries considerable significance domestically and internationally. Despite assertions from ruling alliance leaders that the coalition shift was driven solely by internal factors, doubts persist regarding China's influence.

Notably, Shrestha’s departure for China lacked comprehensive briefings from all ministry departments, raising questions about preparedness amidst heightened Chinese pressure to advance the Belt and Road Initiative (BRI) agenda. 

During Prime Minister Dahal’s China visit last year, preparations were made to sign the BRI implementation agreement. But it was put off after Nepal sought some more time, citing the need for further homework. China has been pushing Nepal for BRI implementation, especially after Nepal ratified the US government’s Millennium Challenge Corporation (MCC) grant agreement.

While Shrestha has publicly advocated for prompt BRI implementation, the Dahal-led government has yet to reach a consensus on the matter, indicating a reluctance to hastily commit to China's initiatives. Even though Shrestha has said that implementation of past agreements remains the top agenda of his China visit,  highly placed government sources say the possibility of Nepal signing the BRI implementation agreement is very low. 

Nepal reportedly had proposed nine infrastructure projects under the BRI, but there has been no progress. 

Although Nepal signed the BRI framework agreement with China in 2017, no infrastructure project has moved forward so far. Of late, China has been trying to bring all areas of cooperation with Nepal under the BRI framework. Controversy has also arisen over China’s unilateral designation of Pokhara International Airport as a BRI project, exacerbating anxieties regarding debt sustainability. With the multi-million-dollar airport still unable to see international flights, there are concerns over how Nepal will repay the Chinese loan. 

Prime Minister Dahal has been urging the Chinese side to convert a significant portion, if not all, of the loan into a grant. He told a gathering in Pokhara a few days ago that efforts were underway to convince China on this matter. Dahal’s appeal for converting Chinese loans into grants reflects Nepal's growing apprehension towards accumulating debt, particularly in light of unfulfilled BRI promises and economic viability concerns.

The prime minister believes that if China converts the loan into a grant and makes it a gift project under the BRI, it would facilitate the BRI implementation agreement. China does not provide grants under the BRI, but the Chinese government could make such a decision if it desires. However, the Chinese side has not given a concrete response. 

Earlier last week, the Chinese Embassy in Kathmandu clarified that the Pokhara airport loan is not a noose around Nepal’s neck. It stated that Nepal’s external debt is higher from international institutions and other countries. China has expressed its willingness to bring international flights to Pokhara but has urged Nepal to provide new air routes for this purpose.

Previously, when the Nepali Congress was part of the ruling alliance, Prime Minister Dahal and other communist parties felt that relations with China were given low priority. China’s proactive engagement following the coalition reshuffle suggests a concerted effort to solidify ties with Nepal’s communist-led government. The absence of contentious issues such as the Nepal-China border dispute in the new alliance’s policy agenda signals an apparent alignment with Chinese interests, prompting optimism in Beijing regarding future cooperation.

Chinese activities seem to have increased in Nepal significantly following the formation of the new alliance. In the past, China has been slow to react to changes in government in Nepal. But this time, it issued a response soon after the new alliance was formed.

During her regular press briefing on March 4, Chinese Foreign Ministry spokesperson Mao Ning said: “We would like to work with the new government to uphold the Five Principles of Peaceful Coexistence, deepen traditional friendship, strengthen practical cooperation, advance the China-Nepal strategic partnership of cooperation featuring everlasting friendship for development and prosperity, and deliver more benefits to the peoples of the two countries.”

Two days later, Chinese Ambassador to Nepal Chen Song met with Foreign Minister Shrestha to extend congratulations and engage in in-depth and friendly discussions on bilateral relations and cooperation.

Vice-minister of the Chinese Communist Party Sun Haiyan also held talks with Nepali Ambassador to China Bishnu Pukar Shrestha right after the new alliance was formed.

During the meeting, she sought information about the recent political developments in Nepal. Vice-minister Haiyan had visited Nepal last month leading a delegation of the International Liaison Department of the Communist Party of China. During her interactions with Nepali political parties, she had remarked that efforts were being made to undermine Nepal-China relations.

Similarly, Lin Jian, a Chinese foreign affairs spokesperson, on March 22, reacted to Shrestha’s visit. In a regular press briefing in Beijing, he said: “The upcoming visit will be [Shrestha’s] first overseas visit after taking office as Nepal’s deputy prime minister and minister for foreign affairs.”

“China stands ready to work with Nepal to take this visit as an opportunity to further deliver on the important common understandings between leaders of the two countries, deepen political mutual trust, pursue high-quality Belt and Road cooperation, expand exchanges and cooperation in various areas and strive for new progress in building China-Nepal strategic partnership of cooperation featuring ever-lasting friendship for development and prosperity,” Lin said.

He added that China and Nepal were “traditional friends and neighbors linked by mountains and rivers. In recent years, our two countries maintained close high-level exchanges with deepening practical cooperation in various fields”. “Our two sides maintained close coordination and collaboration in regional and international affairs.”

Last September, Prime Minister Dahal paid an official visit to China and leaders of the two countries reached important common understandings on growing the China-Nepal relations.”  China expects its security concerns to be somewhat addressed under the communist government in Nepal, which is why Beijing appears more enthusiastic about the new alliance. Additionally, the Dahal-led government has fully banned activities concerning the free Tibet movement in Nepal. 

However, challenges persist in reconciling Nepal’s commitment to an independent foreign policy with the demands of regional stakeholders, particularly amid growing pressure to navigate competing geopolitical interests. Prime Minister Dahal’s emphasis on adopting a balanced diplomatic approach underscores the delicate balancing act facing Nepal’s leadership as it seeks to assert its autonomy while fostering fruitful relationships with key allies.

Prime Minister Pushpa Kamal Dahal announced that diplomatic efforts have been initiated with China to convert a loan for Pokhara International Airport to a grant as it failed to garner income, instead piled up more debt.

This came after opposition lawmaker Chanda Chaudhary raised questions about the increasing loss and piling debt, Nepal Prime Minister said that talks are underway to convert the loan into a grant.

“In order to operate the flights to and from the Pokhara International Airport, a committee has already been formed to study government-private sector cooperation. On the basis of the report prepared by the committee, necessary preparations would be made for the operation of the airport. The loan acquired for the construction of Pokhara International Airport, diplomatic talks are underway to convert it into a grant. Necessary coordination would be made for all the necessary financial management,” PM Dahal said.

The Pokhara International Airport, opened on 1 Jan 2023, hasn’t seen any frequent international flights except for chartered Chinese flights, which appear on rare occasions.

On 21 March 2016, Nepal and China reached a loan agreement stipulating a total loan amount of 1.37bn Chinese yuan, out of which 355.9m Chinese yuan were constituted as interest-free-loans. The Civil Aviation Authority of Nepal (CAAN), the aviation regulating body of the Himalayan nation, is responsible for paying the loan amount by the year 2036.

Earlier, Nepal PM Dahal, upon returning to Kathmandu last year after his visit to China, announced that Chinese flights would come to Pokhara, helping to cover the loss.

While no such flights have commenced, the Prime Minister, referring to the visit, claimed, "During my recent visit to China (22 Sept 2023), a theoretical agreement was reached about commencing connecting flights from various cities of China to Pokhara, and I believe that international flights would land at Pokhara International Airport and help recover the loss.”

Days before the inauguration of the airport last year, the Chinese Ambassador to Nepal claimed in a tweet that the airport was a part of the Belt and Road Initiative (BRI) which was rejected by the Nepal Government.

But soon after the handover, the Pokhara airport exemplified the perils that came with importing China’s infrastructure-at-any-cost development model, disproportionately benefiting Chinese firms at the expense of the borrowing nation.

China CAMC Engineering, the construction division of state-owned conglomerate Sinomach, played a pivotal role in the Pokhara airport project. It imported building materials and machinery from China, and the airport itself was brimming with Chinese-made security and industrial technology. Despite China’s claims about the project’s quality, an investigation by The New York Times revealed an unsettling narrative.

Multiple individuals involved in the project and a thorough examination of thousands of documents indicated that China CAMC Engineering had consistently dictated terms to maximize profits and protect its interests. Simultaneously, it systematically dismantled Nepali oversight.

As a consequence, Nepal found itself entangled in significant debt to Chinese creditors without the expected influx of passengers to repay the loans.

The Finance Ministry of the Himalayan nation had signed a memorandum of understanding supporting CAMC’s proposal in 2011, even before an official bidding process had started. The Chinese loan agreement exclusively allowed Chinese firms to bid for the project.

CAMC initially submitted a bid for $305m, nearly double Nepal’s cost estimate

for the airport. This drew criticism from Nepali politicians, who accused the process of being rigged and the price inflated. Following the outcry, CAMC lowered its bid to $216m, reducing the cost by approximately 30 percent.

In 2016, China and Nepal formalized a 20-year agreement for the project, with a quarter of the funding provided as an interest-free loan. Nepal intended to borrow the remainder from China’s Export-Import Bank at a two percent interest rate.

As construction progressed, glaring issues came to light. The Civil Aviation Authority of Nepal was responsible for overseeing the Chinese contractor, but the lack of experienced personnel, combined with the inadequate allocation of funds for consultants, hampered the project.

Nepal’s strategic location between two major powers, India and China, makes it a crucial player in the geopolitical dynamics of the region and beyond. The country’s location between the two rising, competing and conflicting powers of Asia (China and India) makes it important for Western powers to strike a strategic balancing act in the region. In this situation, Nepal’s strategic location between two of the emerging countries of Asia makes it imperative for the US to launch a regional maneuver. 

In addition, the US and India maintain strategic relationships in the Asia-Pacific region and Quadrilateral Security Dialogue (QUAD). Global power is shifting toward the Asia-Pacific region with strategic bipolarity between the US and China creating several implications for the global order. These developments indicate that the US-led ‘unipolar world’ may not last last long, making way for a multipolar world with China as one of the power centers. 
In recent years, increased cooperation between India and the US through Washington, DC-led projects like the Millennium Challenge Corporation (MCC) is being seen as a counter to China’s BRI in Nepal. China’s debt-based approach to BRI raises concern about the impact of it on the stability and sovereignty of recipient nations, including Nepal. At the same time, MCC has made significant progress within a short span of time, particularly in Nepal’s energy sector, whereas none of the Chinese projects that Nepal signed under BRI in 2017 have materialized/progressed. 

The US believes China’s BRI project is not just an economic initiative but also a geopolitical one and is part of China’s border strategy to expand as well as deepen its global influence. It believes that one of the primary goals of BRI is to export Chinese development and influence, particularly in the developing world. The US-China bipolar strategic rivalry shows that both powers are in a race to influence each other’s ‘regions’. In this situation, the US strategic entry into Nepal and intense rivalry between BRI and MCC projects are reflective of these two countries’ growing competition in world politics.

China views a growing American role in Nepal’s development in recent years as a threat to its presence in the region. Historically, Nepal’s strategic location has shaped Beijing’s delicate balancing act. 

On its part, Nepal presents a range of opportunities for both India and the US, including ensuring stability and security, facilitating economic growth and promoting democratic values. Both countries have also collaborated on advancing Nepal’s legal system, protecting human rights, promoting gender equality and countering Chinese misinformation. Thus, strategic cooperation between India and the US has fostered sufficient trust to see no significant opposition from India regarding the US-led diplomatic efforts in Nepal. All in all, shared interests of India and the US in Nepal provide a strong foundation for cooperation and coordination between the parties involved. 

China has come up with three new initiatives—Global Security Initiative (GSI), Global Development Initiative (GDI) and Global Civilizational Initiative (GCI), which, per Chinese officials, fall under the BRI umbrella. These initiatives, according to the officials, aim to eliminate the root cause of international conflicts, encourage joint international efforts to bring more stability, improve global security governance and promote durable peace and development in the world. But Nepal has reportedly conveyed its unwillingness to join GSI due to risks of data security, unequal distribution of benefits, looming economic dependence, transparency and debt risks. China’s BRI was also seen optimistically initially, but there has been no progress in the past five years even after signing of an MoU with the strategic community seeing a risky amount of debt and a way for Beijing to use its debt leverage to pursue ambitious strategic plans in Nepal. Though 35 projects were originally identified under BRI, Nepal later brought them down to nine. Still, no government in Nepal has committed to moving ahead with these projects due to “concerns over unclear financial terms of Chinese loans”. 

According to diplomats, the Nepal-US relationship is entering a new phase. The US has three distinct interests in Nepal: Political, economic and strategic/military. In terms of strategy, Nepal’s geopolitical location as a gateway for emerging global powers India and China has shaped US interest in Nepal. Different aid programs and a series of high-level visits in recent years are a clear-enough indication of increasing American engagement in Nepal.
Given this context, Nepal must pragmatically balance competing objectives of India, China and the US to advance national interest and priorities. But our governments have largely failed to take timely decisions and initiatives for national development as well as economic upliftment.

The US’ shifting policy toward Nepal is understood as part of the current global power transition. In Nepal, the US-China rivalry has become more visible over the last few years, presenting a great challenge of taking both MCC and BRI together, and balancing the interest of prevailing superpower and emerging superpowers.

Views are personal

Experts claimed that neighboring China's economic development can also benefit Nepal.

At an interaction 'China's Economic Development and New Opportunities for Neighboring Countries' organized by China Media Group and co-organized by Nepal-China Youth Friendship Association here on Wednesday, the speakers said that China's economic development will benefit other neighboring countries.

On the occasion, former Nepali Ambassador to China Leelamani Poudyal said China's economic policy would have an impact in the world.

He said Nepal could benefit from stability and economic development in China. "China's economic policy during the global recession in 2008 had helped the world economy," he said.

Diplomat Hiranya Lal Shrestha said China has made great strides in economic development in a short span of time. He said the visit of Chinese President Xi Jinping to Nepal has given some hope for Nepal's development.

Wang Xin, representative of the Chinese Embassy in Nepal, said China's economy has been able to take a leap due to rapid industrialization development and research. He also claimed that China contributed 42 per cent to the global economy in 2023.

President of the Federation of Export Entrepreneurs Shankar Pandey, Chairman of Nepal-China Cultural and Educational Council Dr Harish Chandra Shah, Chairman of World Cultural Net Deepak Sarkar, General Secretary of Nepal Himalayan Cross-Border Commerce Association Ram Chandra Parajuli, Secretary of China Study Center Prakash Babu Poudel, among others, said Nepal-China relations have not developed as they should have been.

Chief of China Media Group, South Asia Bureau Zhang Yue and President of Nepal-China Youth Friendship Association Bishnu Sapkota stressed the need to work for Nepal's development by removing the confusion among the people about Nepal-China relations.