Submit your Article

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.

China has said that it is ready to work with the new government in Kathmandu to advance the China-Nepal Strategic partnership of cooperation featuring ever-lasting friendship for development and prosperity, and to deliver more benefits to the people of the two countries.

On March 8, four parties– CPN(Maoist), CPN-UML, Rastriya Swatantra Party and Janata Samajbadi Party- formed a new left government. Speaking in a regular press briefing at the Ministry of Foreign Affairs Spokesperson Mao Ning said: China noted that Nepal has formed a new government coalition and reshuffled the cabinet recently. We sincerely hope that relevant parties of Nepal will work together in solidarity, advance the work related to the formation of the new government in a smooth manner, and realize political stability, economic growth and improvement of people’s livelihood.”

She further said that  as a friendly neighbor and cooperation partner, China highly values its relations with Nepal. We would like to work with the new government to uphold the Five Principles of Peaceful Coexistence, deepen our traditional friendship, and strengthen practical cooperation. China has become the first country to make an official comment about the formation of a new alliance in Kathmandu. For the long time, China is motivating Nepal’s communist parties to form an alliance and government. China prefers a communist government in Kathmandu in order to fulfill its interests.  

The Government of China has pledged USD 490,000 to the WTO's Least-Developed Countries (LDCs) and Accessions Programme (also known as the China Programme). The China Programme — initiated in July 2011 under the WTO’s Aid for Trade initiative — aims to enable LDCs to better integrate into the global economy by strengthening their participation in WTO activities and helping those not yet members join the organization.

WTO Director-General Ngozi Okonjo-Iweala and China's Minister of Commerce Wang Wentao signed the renewal of the Programme's Memorandum of Understanding (MoU) on the eve of the 13th WTO Ministerial Conference (MC13) to be held in Abu Dhabi on 26-29 February. 

The Government of China and the WTO review the contents and consider the extension of the MoU on an annual basis. The China Programme provides financing to support:

• WTO accessions internships
• WTO accessions round table meetings
• LDCs' participation in WTO meetings
• South-South Dialogue on LDCs and Development
• LDCs' Trade Policy Review follow-up workshops 
• LDCs' Experience Sharing Programme 

This has also contributed to facilitating the participation of LDC delegations in WTO ministerial conferences. 

More information can be found here.

WTO Director-General Ngozi Okonjo-Iweala said: "I welcome this new contribution by China, which will contribute to facilitating the accession of LDCs to the WTO and to supporting their participation in the global economy. This important contribution once again demonstrates China's consistent  commitment to the objective of promoting LDCs' development and trade integration, as well as its solid support for the Aid for Trade initiative of the WTO." 

Minister Wang said: "Empathizing with the acceding countries, China has been taking every solid step possible to help the countries in need. The China Programme, initiated in 2011, funds internships and LDCs' participation in WTO sessions and holds activities, such as Trade Policy Review (TPR) follow-up workshops and South-South dialogues, to help LDCs and developing members prepare a talent pool familiar with WTO rules, strengthen policy coordination, and better integrate into the multilateral trading system. In the past dozen or so years, the China Programme has achieved a lot, helping eight LDCs join the WTO."

Since 2008, China has contributed US$ 8.89 million to assist developing members and observers, especially LDCs, to integrate into the multilateral trading system.

Vice-minister of the International Department of the Communist Party of China (CPCID), Sun Haiyan, visited Nepal in the last week of Jan 2024. During her four-day visit, she engaged in meaningful discussions with the leaders of major political parties, raising various aspects of bilateral relations.

In contrast to previous visits by Chinese delegations, Sun’s visit garnered significant attention from the Nepali government and political parties. It served as a platform to address long-standing issues that had remained unattended. By bringing these matters into open discussion, she actively sought suggestions and recommendations from prominent Nepali parties to chart the future course of Nepal-China relations. Her expressed desire was to elevate the bilateral ties to a new level, fostering mutual trust and respect.

Undoubtedly, Nepal seeks to maintain positive and neighborly relations with both China and India, with all major political parties prioritizing these two nations in their foreign relations. The adherence to the ‘one-China’ policy remains a longstanding and principled position for Nepal, dating back to the 1950s. Furthermore, Nepal is unequivocal in its commitment to preventing the use of its territory against China by any third country or non-state actors. 

Against this backdrop, the Nepal-China relationship appears generally normal and warm, with occasional minor irritants arising from misunderstandings and miscalculations. However, Madam Sun’s statements go beyond addressing these issues and are directed at external narratives that she believes some sections of Nepali society are adopting and endorsing. It is evident that Sun’s remarks aim to dismiss misconceptions and reinforce the importance of a robust and positive relationship between Nepal and China, urging a deeper understanding of shared values and mutual benefits that underpin their diplomatic ties.

Certainly, it’s essential to consider the broader geopolitical landscape when analyzing her statement and the concerns voiced by other Chinese leaders during their recent visits to Nepal. A significant factor in this context is the global positioning of China and the US policy of ‘containment’, particularly evident in the Indo-Pacific region encompassing the heartland and rimland.

Let’s delve into Vice-minister Sun’s statement and the concerns she expressed during her visit to Nepal. In her statement, she pointed out that some countries are actively working to destabilize the robust relations between Nepal and China, while also highlighting attempts to tarnish the reputation of the Belt and Road Initiative, often labeled as a ‘debt trap’. The underlying context of her statement revolves around the global power struggle, where China leads one axis, and the US leads another. The ideological differences between a socialist China and a capitalist US have contributed to conflicting relations that have, to a significant extent, divided the world’s nations and populations.

Chinese leaders, as articulated in their statements, have made it clear that they will not tolerate any attempts by the US and its Western bloc allies to set the stage against China. This geopolitical backdrop forms the nucleus of Vice-minister Sun Haiyan’s concerns, highlighting the complexities and tensions arising from the broader global power dynamics between the two major players, China and the US. The fact that Nepal has initiated steps to implement the MCC project, involving a substantial grant from the US, while progress on BRI projects remains in the consultation phase, is a matter of concern from the Chinese perspective. And, it is quite natural.

The delay and apparent reluctance in executing Chinese investments, especially in comparison to the timely implementation of projects backed by the US, may indeed be viewed as a genuine concern by Beijing. The reference to Sri Lanka’s Hambantota port, labeled as a ‘debt trap’, serves as a cautionary example, emphasizing China’s stance that such narratives are false and designed to undermine its growing global influence. Delay in the completion of Chinese-funded projects in Nepal has been a recurring concern, and Vice-minister Sun, along with Chinese Ambassador Chen Song, also raised this concern. The intention was to identify the reasons behind these delays and work collaboratively to address the issues, ensuring that Chinese aid is not perceived as a burden to Nepal.

Along with these concerns, Sun emphasized three key areas: The status and future of Nepal-China ties, the desired nature of these relations in changing circumstances, and the role Nepali political parties can play in strengthening bilateral ties.

While the general secretary of the CPN-UML, Shankar Pokherel, responded to the concerns raised by Vice Minister Sun, there was a notable absence of responses from leaders of other political parties during the consultation. Despite the silence on these specific issues, all political leaders affirmed their commitment to enhancing relations with China, expressing Nepal’s eagerness to benefit from China's economic growth. They also reiterated their commitment to the ‘one-China’ policy and support for the Belt and Road Initiative.

Ambassador Chen clarified that the BRI involves more than just concessional loans; it also encompasses grant elements. This statement comes in response to Nepal’s long-standing request for Chinese grants, particularly for major projects under the BRI. However, the ambassador also raised a crucial, unanswered question concerning the delays in projects involving Chinese companies. He pointed out that these companies, which successfully complete projects within set deadlines in other countries, face challenges in doing so in Nepal. Ambassador Chen emphasized that both sides should assess the situation and work toward resolving the issues.

The Nepal government should immediately hold consultation with the Chinese side and move toward implementing the projects keeping the grant element in priority as informed by the ambassador. But, the question left unanswered so far must be mutually addressed. That is the question of Chinese investment and its security. In this regard, the question of Ambassador Chen is serious. He queried the Nepali leaders as to why the same Chinese companies, which were completing projects in other countries within set deadlines, have been unable to do so in Nepal. And he quipped,  “Is it only due to us? No. You have to assess it.” Now it is our part to find fairness. Nepal should seriously do homework to benefit from the two rising economies of the world, which happen to be our neighbors. Until and unless we receive financial support from China and India, we cannot transform Nepal’s national aspiration of ‘Prosperous Nepal, Happy Nepal’ into reality.

Sun Haiyan, deputy minister of the International Liaison Department of the Chinese Communist Party visited Nepal from Jan 26-29. Among other engagements, she held a meeting with second-rung leaders of the national parties represented in the federal parliament. At the meeting, she said that some forces were trying to spoil Nepal-China relations. Sun didn’t name names but she was hinting at the US and India. 

Of late, bilateral exchanges between the two countries have increased. China has also become more vocal and loud in Kathmandu. At the same time, India and the US have also expedited bilateral exchanges with Nepal at multiple levels. Meanwhile, the current government led by Pushpa Kamal Dahal is grappling to maintain cordial ties with all three powers. 

The Ministry of Foreign Affairs is led by Nepali Congress’s Narayan Prakash Saud who is an inexperienced politician in the realm of foreign policy and international relations. This article delves into how the current government is dealing with India, China and the US. 

India

With India, the Dahal-led government has adopted the approach of focusing more on development and economic partnership. Foreign Ministry officials say the signing of power trade agreement with India to export up to 10,000 MW electricity is a key remarkable development in bilateral relations. The agreement, they say, has also created a conducive environment for foreign investment in Nepal’s hydropower sector. Another significant development linked to this deal is India’s nod to allow Nepal to export 40 MW electricity to Bangladesh, which is likely to be operationalized from July this year. After a long time, the dream of regional power has been materialized.

Similarly, officials claim several connectivity and other bilateral projects are moving ahead, and the government has been able to secure Indian support for survivors of the Jajarkot earthquake. India has also increased the grant amount by InRs 1bn to be provided to Nepal under the fiscal year 2024-25. In the new provision, India will be providing Nepal with a total grant of InRs 6.50bn.  

As far as the long-standing issues such as border disputes and the report of Eminent Persons’ Group is concerned, it seems that the present government has adopted a different approach. The Dahal government is unlikely to push India to receive the EPG report. 

As for the Treaty of Peace and Friendship 1950, according to a top diplomat, the present government is of the view that there should be an all-party consensus within the country before approaching India. On border disputes, the government reckons that both political and bureaucratic levels should work simultaneously. 

Speaking at a program a few days back, Foreign Minister Saud said that border disputes between Nepal and India should be resolved on the basis of political consensus. “We have a joint technical committee in this regard. The committee should be activated after which the leadership of both countries should resolve this problem diplomatically based on the facts,” he said. 

China

After the formation of the Dahal-led government, bilateral engagement and exchanges between Nepal and China have increased notably. China seems serious about expediting the works of some projects, such as Ring Road expansion and maintenance of Araniko Highway, among others. Similarly, the two sides have started the paperwork to expedite the construction of cross-border transmission lines while preparations have begun to construct an agro industrial park in Chitwan and Gorkha. 

Over the past few months, both air and road connectivity between the two countries have widened. But the current government still faces the criticism of giving less priority to China, particularly concerning the Belt and Road Initiative (BRI) projects. Beijing has been pressing Kathmandu to sign the BRI implementation plan at the earliest, but the Dahal-led government has not shown much enthusiasm for it.  

A few days back, Deputy Prime Minister and Minister for Home Affairs Narayan Kaji Shrestha said at an event that Nepal and China were working to finalize the BRI implementation plan. But the Ministry of Foreign Affairs has made it clear that Nepal will not take loans from China to realize the BRI projects.

 With big projects, such as those envisioned by the BRI, showing no signs of progressing, China has of late directed its focus on small projects in Nepal, ones that could immediately bring changes in people’s life. A senior official at the Prime Minister’s Office says as the Nepali Congress has been dictating the conduct of foreign policy, there has been little progress in regard to bilateral partnership with China.

While Beijing is pleased with the position taken by Prime Minister Dahal and the senior leaders of major parties against the independence of Taiwan, China still seems wary of the growing influence of Western countries in Nepal.

US

Foreign Minister Saud says there has been substantial improvement in the relationship with the US. For some years after 2018, the Nepal-US ties mainly revolved around the issue of ratifying the Millennium Challenge Corporation (MCC) through parliament. The much controversial issue has now been resolved following the parliamentary endorsement of the MCC Nepal Compact, but some technical details are still there. 

In the MCC, rising cost of the proposed projects is one of the key issues which needs to be resolved through bilateral talks and negotiations. Nepal has already made it clear to the American side that it is not in a position of investing more money in the projects.  

In the past, the US’ Indo-Pacific Strategy (IPS), seen by many as a tool to curb China’s growing influence, had also impacted the Nepal-US relationship. But the American side has managed to downplay the IPS concerns, though some of its components are under implementation. 

During his visit to the US, Foreign Minister Saud held talks with his American counterpart Antony Blinken and other high-level government officials. Along with increasing the volume of bilateral assistance, American private companies have shown interest to invest in Nepal’s tourism, agriculture, medical and other areas, and they are seeking an appropriate environment. In 2023, there was a series of visits from the American side. In the meeting with Saud, Blinken said Nepal is a valued partner in the Indo-Pacific region which has given a clear message that America accords high priority to its relationship with Nepal.

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