PM’s China Visit To Boost Bilateral Ties

Leading a Nepali delegation, Prime Minister KP Sharma Oli is embarking on his four-day official visit to China at the invitation of Chinese Premier Li Qiang today (December 2). The visit is expected to be instrumental in enhancing bilateral ties based on mutual cooperation between the two friendly neighbours. The importance of this visit lies in the fact that the two countries are likely to sign a vital agreement regarding the execution of the Belt and Road Initiative (BRI) in Nepal. The two nations inked the BRI framework in 2017, agreeing on a modality of future cooperation under this framework. However, the multi-billion cross-border connectivity and infrastructure projects have yet to be implemented. 

Common standing

China had proposed for executing the different connectivity and other infrastructure development projects under loan assistance as well as grants. Considering Nepal’s tricky existing economic situation, the country is calling on China to run the projects under the BRI in grants. Amidst widespread debates among the political parties whether to execute the China-funded projects in loans or grants, two ruling political parties — Nepali Congress and CPN-UML — have been able to find a common ground. They have wanted the northern neighbour to materialise those crucial projects under its grant assistance. 

To have a shared position, the two political parties had formed a four-member taskforce to review a proposal sent by China in 2020. The team has renamed the ‘BRI implementation plan’ as ‘Framework for cooperation’. The PM’s political advisor Bishnu Rimal and development and economic advisor Dr. Yubaraj Khatiwada represented the UML in the taskforce while lawmaker Gagan Kumar Thapa and international law expert Sebanta Dahal were from the NC. The joint team was entrusted with the responsibility of finding common grounds for the two political parties on the matter. This was a rare initiative taken by the Nepali political parties to have a joint position on matters of foreign policy.

Before drafting the ‘BRI Framework for Cooperation’, the panel had made a comprehensive review of the Chinese proposal. The taskforce also apprised PM Oli and NC president Sher Bahadur Deuba of the draft proposal. The proposal incorporates Nepal’s priority projects in the document as mentioned in the BIR framework and cooperation. Now, Nepal wants to negotiate nearly one dozen projects on a case-by-case basis. Some of the major projects under different clusters include Tokha-Chhahare tunnel road, Hilsa-Simikot road, and Kimathanka-Khandbari road and the Kimathanka bridge, Jilong/Kerung-Kathmandu cross-border railway. The railway’s feasibility study is being done with Chinese grant assistance. 

Similarly, Nepal has proposed to build the 220KV Jilong/Keyrung-Rasuwagadhi-Chilime cross-border power transmission line under the energy cluster. This project aims at having a direct power connectivity between the two nations. Nepal also wants China to support Kathmandu Valley Transmission Line Upgradation project to address the issue of increasing power load demand in Kathmandu. Likewise, the country has sought assistance from China to build Madan Bhandari University of Science and Technology, and Nepal-China Friendship Park and Jhapa Sports and Athletic Complex.  In view of the limitation of time, the Ministry of Foreign Affairs (MoFA) dispatched the proposal to the Chinese side through the Chinese Embassy based in Kathmandu on Saturday itself. Nepal is waiting for the Chinese side’s node on the proposal. 

During the visit, the PM is scheduled to call on Chinese President Xi Jinping in Beijing. He will also have bilateral discussions with Premier Li and exchange views on issues of mutual interest and cooperation. Besides, he will meet with Zhao Leji, the Chairman of the Standing Committee of the National People's Congress of the People's Republic of China. He is going to deliver a keynote address at the Peking University. As he is also addressing the Nepal-China Business Forum, the visit is anticipated to be helpful for the promotion of trade and tourism between the two countries. This may contribute to increasing Chinese investments in the country in the future. 

Negotiations

During her recent three-day visit to China, Minister for Foreign Affairs Dr. Arzu Rana Deuba also informed her Chinese counterpart Wang Yi about Nepal’s position on the BRI implementation framework. She was in Chengdu to meet with Wang Yi as part of preparations for PM Oli’s impending visit to China. She and Yi held extensive discussions on a gamut of bilateral relations and cooperation. She is hopeful that China may accept Nepal’s proposal on the BRI Framework and Cooperation. Both Nepali and Chinese sides have been intensifying preparations for the high-level visit and holding negotiations on the deals likely to be agreed upon in Beijing. When the Chinese side is satisfied with Nepal’s proposal, the two countries are likely to sign the agreements on Tuesday (December 3). Once the agreement on this matter is signed, this will open doors for the execution of the BRI projects in Nepal. 

The visit is also expected to help execute the various past agreements, including the ones signed between the two nations during the visit of Chinese President Xi in 2019.  With Chinese economy growing rapidly, the number of outbound travellers has been on the rise despite economic fallout of COVID-19. As Kathmandu enjoys better air connectivity with several Chinese cities, many tourists from China visit Nepal every year. Once cross-border road and railway linkages are in place, Nepal is sure to welcome many more Chinese holidaymakers, giving a boost to the country’s tourism industry. This will enhance bilateral trade as well.   

(The author is a former deputy executive editor of this daily.)