Nepal and China signed a framework agreement for the Belt and Road Initiative on Wednesday, December 4, advancing the level of their economic cooperation and strengthening ties between the two nations.
Both the countries signed the agreement on the third day of Nepal’s Prime Minister K P Sharma Oli’s four day visit to China. During his visit, Oli met with Chinese president Xi Jinping, Chinese premier Li Qiang, and visited Peking University.
Nepal had originally signed the BRI in 2017. However, most of the projects conceptualized under the ambitious scheme were not operationalized in the country. Both the Chinese and Nepali governments now claim that they have shorted the differences and bottlenecks.
China’s trip was Oli’s first foreign trip after becoming prime minister of Nepal for the fourth time. This broke a long term convention of Nepalese prime ministers going to India on their first foreign trip. The move has created speculations about Nepal’s changing orientation in India, and its alleged attempts to get closer to China.
However, both China and Nepal have maintained that their mutual relationship does not impact any third country negatively. It is particularly so when China and India, after almost five years of tensions at their borders, agreed to restart diplomatic engagements afresh last month.
On Wednesday, Oli also addressed the China-Nepal business summit, expressing hopes of increased Chinese investments in Nepal and an increase in mutual trade. China is Nepal’s second largest trading partner after India, with close to USD 2 billion in annual trade. Experts say there is an increase in the volume of trade between both countries.
On Tuesday, during his meeting with Oli, Chinese President Xi said that China places Nepal in a very important position. China is working to consolidate its relations with Nepal and hoping to “push for new progress in advancing the China-Nepal strategic partnership of cooperation featuring ever-lasting friendship for development and prosperity,” the Global Times reported.
Cooperation on multilateral forums
Xi, while noting that both countries will celebrate 70 years since the establishment of their diplomatic relations next year, also emphasized strengthening coordination with Nepal on multilateral platforms such as the UN, as a way to defend the common interests of both countries and to resist hegemonic pushback by certain countries in China’s pursuit of a multipolar world.
During his visit to Peking University, Oli acknowledged China’s support in Nepal’s economic development, also calling the BRI a vision for “shared prosperity and win-win cooperation.” He hoped that both the countries “can envision a future of shared prosperity and enduring friendship, inspired by mutual respect and the pursuit of a better world for all.”
Both countries issued a joint statement on Tuesday, which reiterated the Nepalese support of the “one China policy,” with Taiwan being an integral part of China. China expressed its full support of Nepalese sovereignty and territorial integrity, in return promising enhanced cooperation in the fields of mutual development.
The joint statement spoke about both the countries being firmly committed to “Trans Himalayan Multi-Dimensional Connectivity Network,” with a chain of ports, roads, railways, aviation, power grids and telecommunication “to help Nepal transform from a land-locked country to a land-linked country.”
Talking to CGTN, former prime minister of Nepal Jhala Nath Khanal expressed hope that if the BRI projects are well implemented, Nepal can become a link between India and China, the world’s two most populous countries.
Khanal also noted that the Chinese approach to world relations expressed through Global Development Initiative (GDI), Global Security Initiative (GSI) and Global Civilization Initiative (GCI) stands completely opposed to the western attempts of domination and exploitation of the third world. China is using its economic and political potential to push the developing countries to become more and more independent, he said.
