Spotlight On Nepal-China Relations

Prime Minister KP Sharma Oli's third visit to China, starting from Monday (December 2), has thrown a new spotlight on Nepal's friendly ties with China, as the visit is significant in terms of Nepal's willingness to deepen ties with its powerful northern neighbour. Both Nepal and China share a deep and long-standing friendship that dates to ancient times. Ancient trade routes across the Himalayas and cultural exchanges helped establish strong ties between the two countries. The spread of Buddhism from Nepal to China serves as proof of their shared religious and cultural heritage.

In recent decades, Nepal and China have developed an alliance that has boosted collaboration in infrastructure, trade, and development. Both nations have emphasised and illustrated the strategic importance of the Nepal-China partnership through initiatives such as the Transit and Transport Agreement inked in 2016 and Nepal's signing of China's Belt and Road Initiative (BRI) in 2017. 

Need-based projects 

Although these agreements reflect strong desires of Nepal to be part of Chinese assistance, Nepal's complex geopolitical situation can be observed in the failure in implementing projects, particularly those that are under the BRI. Things have, however, appeared to have moved in the right direction lately after two ruling coalition partners, the Nepali Congress and PM Oli’s CPN (UML), agreed to reach an agreement under what they term as the BRI Framework. As per this framework, the Nepali side would opt for need-based projects rather than going for bigger infrastructure under loans.

Leading an 87-member Nepali delegation, PM Oli on December 3 will meet and hold dialogue with Chinese President Xi Jinping and Premier Li Qiang before both nations ink agreements on upgrading roads, developing infrastructure projects, constructing meeting halls and sports facilities, as well as infrastructures like the trans-Himalayan railway, and exploring new areas of cooperation in technology, education, and energy. The stage for these agreements was set by Foreign Minister Arzu Rana Deuba, who visited China prior to the Prime Minister’s.

Respecting one another's sovereignty and refraining from meddling in their domestic affairs are the cornerstones of Nepal and China's diplomatic relationship, which was formally established on August 1, 1955. China’s neutral stance on Nepal’s politics has supported stable bilateral relations, despite political upheavals in Kathmandu. Nepal has consistently maintained the "One China" policy out of respect for one another, putting an end to any activities that are hostile to China on its soil. Since the time Nepal and China formally established diplomatic relations around 70 years ago, their ties have grown to unprecedented heights. The importance of the ties is demonstrated by the official exchanges of visits by top dignitaries of both countries at different times.

From Nepal, Prime Ministers Tanka Prasad Acharya (1956), BP Koirala (1960), King Mahendra (1961), Kirti Nidhi Bista (1972, 1978), King Birendra (1973, 1982, 1987, 1993, 1996, 2001), Prime Minister Girija Prasad Koirala (1995), Prime Minister Manmohan Adhikari (1995), Prime Minister Sher Bahadur Deuba (1996), King Gyanendra (2002, 2005), Prime Minister Pushpa Kamal Dahal Prachanda (2008), Prime Minister Madhav Kumar Nepal (2009), President Dr. Ram Baran Yadav (2010), Prime Minister Sushil Koirala (2014), Prime Minister KP Oli (2016, 2018, 2024), Vice President Nanda Bahadur Pun (2016), and President Bidya Devi Bhandari (2019) visited China that strengthened already-existing  friendly bilateral relations and respect for one another.

In a similar vein, China sent dignitaries to Nepal as a goodwill gesture. In order to establish new chapters in bilateral relations, Premier Zhou Enlai (1957, 1960), Premier Zhou Ziyang (1981), Vice Premier Deng Xiaoping (1978), President Li Xiannian (1984), Premier Li Peng (1989), President Jiang Zemin (1996), Premier Zhu Rongji (2001), Premier Wen Jiabao (2012), Premier Li Keqiang, and President Xi Jinping (2019) came to Nepal.

Many say Nepal seeks to become less dependent on India by enhancing its economic relations with China. However, given that India is a significant actor in regional and international geopolitics, much like China, Nepal must remain wary of not ruffling India's sensitivities. As India often expresses its concerns about Nepal's growing ties with Beijing and China's influence in the area through initiatives like the BRI, Nepal often faces challenging task of balancing its diplomacy with two bigger neighbours. Nepal's decision-making has become more complicated because of some pressures to steer clear of Chinese loans. Failure in implementing BRI projects and facilitating China-funded infrastructure in full swing indicates these challenges.

Despite many such hurdles, Nepal and China have fostered close people-to-people ties that go beyond diplomacy. Mutual goodwill has greatly developed because of tourism, educational scholarships, and cultural interactions. China is a significant source of tourism for Nepal, as thousands of Chinese visitors come here each year. Meanwhile, with both academic knowledge and insightful perspectives on Chinese society, Nepali students studying in China help strengthen ties further.

Careful consideration

However, bilateral ties are fraught with difficulties. The Nepali side must therefore show careful consideration to manage financial feasibility of bigger projects, must firmly deal with local resistance to infrastructure projects, and negotiate the geopolitical ramifications. It is quite beneficial to strengthen Chinese collaboration because it presents chances to increase Nepal’s trade, draw in investment, and promote tourism. But the implementation of ambitious projects is frequently hampered by Nepal's political instability and ineffective governance, lack of openness, responsibility, and strategic thinking.

To sum up, Nepal's diplomatic engagements with its powerful northern neighbour demonstrate its ambitions as an independent country, which go beyond its foreign policy stance. Our nation should maximise its strategic advantages and try wholeheartedly to attract investments in infrastructure, connectivity, and trade and commerce, and fortify close links and maintain friendly relationships with India. Through China’s friendly gestures and goodwill, Nepal might become a land-linked state, fostering economic growth and collaboration with neighbouring nations and regions. PM Oli’s visit to China is expected to further solidify the country’s role as a transit hub between South Asia and China.

(Upadhyay is a former managing editor of this daily.)