Submit your Article

Centre for Social Inclusion and Federalism (CESIF) organized a round table discussion on ‘Small Scale Aid in Borderlands and Cross-border Ties’, reflecting on two of its publications: “Dynamics of Small-Scale Foreign Aid in Nepal’s Borderlands” and “Evolving Nepal-China Cross Border Relations and Its Impact on Borderland Citizens.”

The Executive Chair of CESIF, Vijay Kant Karna reflected in his opening remarks the importance of research on Nepal’s trade and border relations with China and India.

Madhav Sapkota, Member of Infrastructure Development Committee (HoR), Hon’ble Samjhana Thapaliya, Member of International Relations and Tourism Committee (HoR), Former Secretary Krishna Gyawali, Former Secretary Lal Shankar Ghimire and Secretary of Ministry, Commerce and Supplies, Madhu Marasini were the prominent speakers during the discussion, reads a statement issued by CESIF.

Presenting the findings on “Dynamics of Small-Scale Foreign Aid in Nepal’s Borderlands,” Milan Acharya, a researcher at CESIF, said that China’s small-scale aid focuses solely on the northern frontier districts bordering Tibet Autonomous Region. Of late, India’s small-scale aid and projects have increased in the northern region. The research found that China has a tendency to override state mechanisms and procedures and its small-scale aid is unregulated compared to that of India’s.

Sharing the findings of the research “Evolving Nepal-China Cross Border Relations and Its Impact on Borderland Citizens,” Prabisha Basnet, a researcher at CESIF said, “The Dalai Lama issue remains a major obstacle, with China viewing reverence as a security threat. Unilateral border closures, stringent checks, and declining trade also impacted cross-border marriages and cultural exchanges.”

The dialogue brought together diverse views from the parliamentarians and experts, according to the statement.

Sapkota, representing a northern bordering district Sindhupalchowk, shared his experience of China’s aid in Nepal. He specified an example of the high maintenance cost of a school constructed by China.

Samjhana Thapaliya raised concerns about the border issues with India in Saptari which need to be resolved by both neighbors, India and Nepal.

Former Secretary Krishna Gyawali congratulated CESIF for the findings and further commented on small aid in Nepal.

He said that although small aid assistance is very important, its sustainability after the departure of donors’ funding also needs to be taken into account. He saw lobbying from politicians as the most important factor for small scale funds at the local level.

Secretary Gyawali noted that the objective of small-scale aid must be aligned with national interest, with appropriate monitoring, operation maintenance and accountability mechanisms. Former Secretary Lal Shankar Ghimire expressed his concern on Nepal having an agreement with Tibet, a province of China instead of its central government.

Overall, the participants were united in expressing that small scale aid is important from both India and China. However, it needs to be regulated by the Nepali state mechanism. For this to go ahead, there has to be an institutional cohesion between ministries. 

More than 100 people have been killed after an earthquake hit northwestern China while many people were asleep, Aljazeera reported.

The earthquake, measured at 6.2 according to state news agency Xinhua, struck at about midnight in Gansu Province near the border with Qinghai, causing significant damage, state media reported on Tuesday.

The tremor was felt as far away as Xi’an in northern Shaanxi province, about 570 kilometres (350 miles) from the epicentre.

Gansu provincial authorities told a press conference that as of 7.50am (23:50 GMT on Monday), 105 people had been confirmed dead, and 397 injured. More than 4,700 houses had been damaged, they added. Power and water supplies were disrupted in some villages, Xinhua said.

According to CCTV, at least 11 people were also killed in the city of Haidong in Qinghai. Haidong is situated close to the epicentre about 100km (60 miles) southwest of Gansu Province’s capital, Lanzhou.

People living close to the epicentre rushed out onto the street as they felt the earthquake. Some buildings collapsed.

“I live on the 16th floor and felt the tremors so strongly,” a man named Qin was quoted as saying in the state-run Global Times. “The moment of the earthquake was feeling like being tossed up after surging waves… I woke my family up and we rushed down all 16 floors in one breath.

Qin added that it was minus 12 degrees Celsius (10.4 Fahrenheit), and that while some of his neighbours had put on down jackets or wrapped themselves in blankets others were bare-chested, according to Aljazeera.

Rescue work was under way with Chinese President Xi Jinping calling for “all-out efforts” in the search and relief work. Nearly 1,500 firefighters were deployed with another 1,500 on stand-by, according to state media. More than 300 officers and soldiers were also mobilised for disaster relief.

Supplies including drinking water, blankets, stoves and instant noodles were also being sent to the affected area.

Footage on state television showed emergency vehicles driving along snow-lined highways, and rescue workers pictured shoulder-to-shoulder in the trucks.

The US Geological Survey reported the quake was a magnitude 5.9, while the European Mediterranean Seismological Centre (EMSC) said it was a magnitude 6.1.

The earthquake struck at a depth of 10km (6 miles) at 11:59 pm local time on Monday (15:59 GMT), according to the USGS, which initially reported the magnitude at 6.0. Multiple aftershocks were reported.

Gansu has a population of about 26 million people and includes part of the Gobi Desert.

Earthquakes are not uncommon in China.

In September 2022, a 6.6-magnitude quake hit Sichuan Province leaving almost 100 dead.

A 7.9-magnitude quake in Sichuan in 2008 left more than 87,000 people dead or missing, including 5,335 children who were in school at the time it happened.

At least 242,000 people were killed in 1976 after an earthquake struck Tangshan in the worst natural disaster in Chinese history.

Center for Social Inclusion and Federalism (CESIF) organized a round table discussion on Nepal-China Bilateral Relations, reflecting on the Prime Minister’s visit to India from September 23-30, 2023.

The discourse was held at Basera Boutique Hotel on December 12, 2023 and brought together distinguished parliamentarians, experts, journalists, former bureaucrats and diplomats.

Raj Kishor Yadav, Chairperson of the International Relations and Tourism Committee at the House of Representative, was the chief guest speaker of the program, reads a statement issued by Center for Social Inclusion & Federalism.

Similarly, Tsering Lhamu Lama (Tamang) and Sishir Khanal, both members of the International Relations and Tourism Committee, Dr Minendra Rijal, former Defense Minister of Nepal and Central Working Committee member of the Nepali Congress and Ambassador Madhu Raman Acharya, former Foreign Secretary of Nepal and Permanent Representative of Nepal to the United Nations, New York, were the prominent speakers.

The Executive Chair of CESIF, Ambassador Vijay Kant Karna reflected in his opening remarks that the Prime Minister’s visit was an important event but had limitations. Although a 12-point agreement was announced in the joint statement of both prime ministers, earlier agreements are yet to be followed up by both countries. “The visit was unsuccessful in attracting significant Chinese investments in infrastructure development,” Ambassador Karna said.

The dialogue brought together diverse views from the parliamentarians and participants.

Raj Kishor Yadav expressed the necessity to maintain a balanced relationship between China and other world and regional powers.

He further noted that our foreign policy must avoid “fear psychosis” when dealing with foreign countries.

Similarly, Tsering Lhamu Lama (Tamang) expressed the importance of opening border points between Nepal and China. Lama representing Karnali Province, reminded that five of the border points are in Karnali, which can hugely benefit the economy of the province. Lama concluded that the visit was successful as it was also able to secure the agreement with China to build a road to Man Sarovar from Nepal, according to the statement.

Likewise, Sishir Khanal noted that the Prime Minister’s visit was not clear enough in its objectives. He further said that the visit did not make any significant contributions towards the relationship between Nepal and China, including the BRI agreement and the border points. He raised a concern as Nepal formally accepted the “One China Principle,” moving on from the “One China Policy”.

Dr Minendra Rijal said that the joint communique has a language that is rather imposing on Nepal. He expressed concerns about debts Nepal is taking from China, including the amount for the Pokhara International Airport.

Moreover, Ambassador Madhu Raman Acharya pointed out that there was no substance in the agreement except the transmission line between Kerung and Rashuwagadhi. He said that among the seventy agreements since the former PM KP Sharma Oli visit to China, only a few are being implemented. He also expressed concerns about the joint communique’s language against Taiwan’s independence.

Overall, the participants were united in expressing that the agreements signed during this and previous visits have not been successfully implemented. There was also a concern that official agreements to implement BRI in Nepal are not yet public, which is allowing China to shift goalposts.

The participants opined that Nepal needs to understand China's strategic concerns better and express Nepalese interests specifically with China.

Korala entry point at Nepal-China border will be opened from November 13.

With this, Korala border point, which has been closed for four years, will be opened from next Monday.

During his visit to China, Prime Minister Pushpa Kamal Dahal had urged the Chinese government to open the closed border points.

Following his request, preparations are being made to officially open the Nepal-China border on the northern side.

The Chinese side has invited local traders and the general public of Lomanthang and Loghekar Damodarkunda for the same, Loghekar Damodarkunda Rural Municipality Chairman Lopsang Chomphel Bista said.

He said that the people have been notified to bring citizenship certificates along with the border pass to enter China for the first time.

“The Chinese side has urged the people entering the border to bring citizenship certificates along with border passes to collect detailed information,” Bista said.

With the decision of the Chinese side to open the Korala border point, preparations are also being made for the inauguration program, Lomanthang Rural Municipality Chairman Tashi Nurbu Gurung said.

He said that high-ranking officials from the Chinese side will attend the inauguration program.

The Mustang administration had distributed border passes to 980 people in the first phase.

The border point had remained closed since the Covid-19 pandemic.

The Government of China announced to provide materials worth Rs 100 million to the earthquake-stricken areas, Chinese Ambassador to Nepal Chen Song wrote in Twitter today.

As the first emergency response, the assistance materials include tents and blankets from China South Asian Countries Emergency Supplies Reserve, the Ambassador stated.

All these materials will arrive in a couple of days, it is said.

The earthquake measuring 6.4 on the Richter scale with its epicenter in Ramidanda of Barekot Rural Municipality-1 in Jajarkot occurred at 11:47 on Friday night.

So far, a total of 157 people from Jajarkot and Rukum Paschim lost their lives while the number of injured crossed 200.

Nepal and China have agreed to promote collaboration and cooperation in the field of judiciary, though the two countries have entirely different judicial systems.

Chief Justice Bishowambhar Prasad Shrestha, who is currently on a visit to the northern neighbor, held bilateral talks with Zhang Jun, the Chief Justice and President of the Supreme People's Court, China.

During the meeting, various matters within the realm of judicial services were discussed. Expressing satisfaction over the longstanding bilateral relations happily existing between Nepal and China, both parties agreed to further strengthen this relationship by promoting cooperation and collaboration in the field of judiciary, the Nepali side stated in a press statement.

Shrestha commended China for its noteworthy accomplishments in the application of information and communications technology in the field of judicial services and underlined the need for exchange of knowledge, experiences and best practices between the two countries. 

Former Prime Minister and CPN (Unified Socialist) leader Jhalanath Khanal left for China on Sunday evening to attend the third 'Belt & Road Forum (BRF) to be held in Beijing, informed party's central foreign secretary Dr Shanker Khatiwada.

According to him, former PM Khanal is also scheduled to address the third BRF to be held on October 18.

During his stay in China, leader Khanal will also have separate meetings with the leaders of the Chinese Communist Party and leaders coming from different countries.

Leader Khanal along with Rabi Laxmi Chitrakar and Prof Dr Yuwaraj Sangraula left for China to participate in the program.

The team will return home on October 22.

After forty-two years, Nepal and China have agreed to amend the bilateral trade agreement that has been guiding the bilateral trade between the two countries. The two neighbors, on Monday, agreed to form a joint technical working committee to review and amend the Nepal-China Trade and Payment Agreement signed in 1981. 

The Ministry of Industry, Commerce, and Supply of Nepal and the Chinese Ministry of Commerce signed an agreement to this effect in Beijing during the bilateral meeting held at the Great Hall of the People between Prime Minister Pushpa Kamal Dahal and his Chinese counterpart Li Qiang. Prime Minister Dahal is on a week-long visit to the northern neighbor.

The Trade and Payments Agreement between Nepal and China has been in operation since 1981. The agreement allowed the use of a number of trading points for the transport of goods between the two countries. 

With a paradigm shift taking place in the international trade regime, trade experts have been insisting on an amendment to the bilateral trade agreement with China. According to them, there are several gaps in the current bilateral agreement and it has also turned obsolete in the current scenario as Nepal faces a huge trade deficit with China. 

After three years of border closures and transportation disturbances, bilateral trade with China is coming back to normalcy with the opening of the Rasuwagadhi and Tatopani border points. 

Over the last several years, imports from China have grown steadily except for occasional hiccups such as in the fiscal year 2019/20 when the government in Nepal imposed a lockdown in March 2020 to curb coronavirus transmission that went on for nearly four months.

On the other hand, Nepal’s exports to its northern neighbor have dwindled leading to a massive trade deficit in the trade between the two countries. Nepal’s exports to China in the last FY 2022/23 stood at just Rs 2.34 billion whereas imports from China reached Rs 231.5 billion in FY 2022/23.

Despite being a next-door neighbor, Nepal has failed to boost its exports to China. China has also been providing duty-free and quota-free market access to thousands of Nepali products which are available to Nepal for being a least developed country. According to the Nepal Trade Information Portal of the Ministry of Industry, Commerce, and Supplies, China has been providing zero tariff facilities for about 8,000 goods originating in Nepal. These goods make up 95 percent of the total exports of Nepal to China. 

To receive the Chinese zero-tariff facilities, exporters are required to fulfill certain rules of origin conditions for their goods. Despite such a facility, Nepal has been failing to utilize the duty-free facility and boost exports. One of the reasons, according to officials and experts, is the strict documentation requirements to get export clearances from the Chinese authorities. 

The World Bank in its Nepal Development Update Report in April 2021 pointed out that Nepal has the potential of exporting 12 times higher than its existing annual exports with the highest potential of boosting exports to China. The multilateral agency has termed the untapped export potential as ‘missing exports’. From the perspective of destinations, Nepal’s largest ‘missing exports’ are with China (by $2.2bn), followed by India ($1.2bn), the United States ($800m), and Japan ($700m), according to the report. According to GAN President Pandey, the thin population in the bordering Tibet region also limits Nepal’s export potential to China.

In contemporary geopolitics, international organizations play a crucial role in shaping global governance and power dynamics. China and the United States have reached an ideological stalemate as they are entrenched in shaping global governance through intergovernmental groupings by influencing the Global South. A contested US, an emerging China and a rising India have been openly trying to stabilize their relationship with renewed dialogues and regular diplomatic engagements, which have been at their lowest in the last 50 years with the risk of war. The Group of 20 (G20) and the Group of 77 (G77) are two prominent blocs within the international community. 

The triad diplomacy between China, Russia and North Korea is an endeavor of Russia to globalize the war in Ukraine. President Putin’s ambition and strategic misstep is costing the world colossal losses, together with Sino-American rivalry. Putin is rooting for an international system that is multipolar, upholds conservative values, is largely delinked with the US and gives space to Russia as a dominant player in a new era of global politics. In the Cold War, the inclination of the ‘Third World’ toward the Non-Aligned Movement was phenomenal. 

But in the era of Cold War 2.0, India’s influence in the Global South is more visible as the G20 summit, just concluded with North-South cooperation, has shown. Like India, China also has plans to lead the Global South for South-South cooperation. 

It is important to compare India’s role in the US-governed G20 with that of the China-led G77. Additionally, discussions on the concept of the ‘South bloc’ and its implications for geopolitics and great power rivalry are essential for international relations.

Geopolitical significance

The G20 comprises Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, United Kingdom, and the United States along with the European Union. This bloc, accounting for more than 80 percent of world GDP, 75 percent of global trade, and 60 percent of the global population, was established in 1999 as a platform for Finance Ministers and Central Bank Governors to discuss international economic and financial issues and address major issues related to the global economy, such as international finance stability, climate mitigation and sustainable development. India and the US are key players in the G20, which comprises major economies of the world. Both countries possess significant geopolitical and economic clout. India represents a large emerging market with tremendous growth potential, whereas the US remains a global superpower with vast influence.

The Group of G77 (G77) was established in 1964 and originally consisted of 77 member-states, hence its name. 

Over the years, the membership has grown to include 134 developing countries from Africa, Asia, Latin America, and the Caribbean. China’s membership in the G77 in 1994 grants it a platform to represent the interests and aspirations of developing nations to promote economic cooperation, coordinate positions on international issues and advocate for development needs of member-states.  As the world’s second-largest economy, China’s growing influence in G77 gives it a considerable geopolitical leverage.

Global politico-economic connection

The New International Economic Order (NIEO) approached around after the Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development or the Group of 24 (G24) was recognised in 1971 as a chapter of the G77 to harmonize the opinions of developing countries on international monetary and development releases, which then envisaged North-South cooperation in 1973 in the Algiers Conference of non-aligned countries. The sixth Special Session of the United Nations Conference on Trade and Development (UNCTAD), established in 1964 as an authorities’ body of the UN General Assembly in stimulating trade and development predominantly in developing countries or the Global South, adopted a program of action while the Paris talks (North-South Dialogue of 1977) negotiated North-South cooperation by setting up the Willy Brandt Commission with an understanding to revitalize the issues of international economic development emphasized by the World Bank Commission Report (1980) for North-South cooperation.

 In G20, both India and the US possess strong and diversified economies. With the nominal GDP of $25.46trn in 2022, the US has a higher GDP and greater economic influence globally. India’s GDP of $3.39trn in 2022-23 with economic growth rate and potential offer has vast opportunities for investment and development. The G20 is composed of most of the world’s largest economies’ finance ministries, including both industrialized and developing countries. It accounts for around 80 percent of the gross world product (GWP), 75 percent of international trade, two-thirds of the global population and 60 percent of the world’s land area.

G77 accounts for 80 percent of the world’s population. Within the grouping, China’s economic strength is emerging with the GDP of $18trn and its Belt and Road Initiative aims to channel financial aid, infrastructure projects, and investment among the G77 nations o 

This is Part I of a two-part series.  

The author is a Strategic Analyst, Major General (Retd) of the Nepali Army, and is associated with Rangsit University, Thailand