Nepal-China New perspective of Relationship

By TON Nepal

China is persistently containing US led allies in South Asia while pursuing and dealing countries like Nepal. As the diplomacy is all about friendship, dignity, trust and good relationship. Nepal's Foreign Minister three-day visit in northern neighbor China concluded last Thursday manifestly displayed required level of mutual cordiality, mutuality and good neighborliness. This indicates a range harmonies outstanding mutual issues.

It is evident and visible from the two sides in their respective post-visit press statements and both parties portrayed the visit as "successful" to their domestic audience in furthering their own strategic agenda to contribute to consolidating their bilateralism.

No doubt, Nepal's Foreign Minister visit, that took place at a time when tensions between China and the United States were at their peak following the US House Speaker visit to Taiwan, was an important bold step to reassert Nepal's "non-aligned" foreign policy while dealing with two strategically important global forces.

In addition, before embarking on the visit, Nepal’s Foreign Minister had written to Washington, DC authorities about Nepal's disinclination to follow the US State Partnership Program (SPP). It was in line with Chinese anticipations. However, China seemed to appreciate these gestures and invited the Nepal's Foreign minister as part of key priorities on the dialogue table with Nepal.

Nepal's first priority is to ensure the opening of two key border points Rasuwagadhi-Kerung and Tatopani-Zhangmu. Tatopani has remained largely shut for the last seven years after the 2015 earthquake and Rasuwagadhi since the outbreak of the Covid-19 pandemic in 2019. In this regard, the press statement by the Nepal Embassy in Beijing said that the two foreign ministers agreed to open these two border ports for two-way trade.

The second concern for Nepal is its inflated trade deficit with China. In the last fiscal year ended July 15, Nepal's trade deficit with China stood at Rs264 billion. In the whole year, Nepal could export goods worth only Rs809 million.

Thus, China's exports to Nepal are almost 328 times higher compared to shipments in the other direction. Of course, Nepal has very limited items to export, but the deficit is also alarmingly exacerbated by incessant hurdles created by China for Nepali traders at the border crossing points. Nepal's Foreign Minister Visit doesn’t seem to have taken up this issue with its due weightage.

The third unresolved issue is the newly emerged instances of boundary disputes and reactivation of the Joint Boundary Committee. In the first place, China seem to recognize the dispute as an “issue". The proposal to form yet another technical committee just to make the existing committee functional appears effort this respect.

The two sides also agreed to formulate an implementation plan to construct the Belt and Road Initiative (BRI). It is apparent that the about Rs15 billion grant promised by China would be disbursed under the umbrella of the BRI framework. No doubt, Nepal also needs to make its stand on the BRI unequivocally clear since Nepal signed it in May 2017.

However, at the nation-state level, Nepal's key concerns, to repeat, smooth operation of the Tatopani and Rasuwagadhi border crossing points, resolution of border controversies and support to reduce the trade imbalance, among several others, have remained equally unheard by Beijing regardless of the ideological hue of the regime in Kathmandu.

As China has persistently proved a high potential foe to global superpower like US when it comes to deals and interactions the countries in South Asia like Nepal. For this China is competing and extending its sphere of strategic influence in Indio-specific region.

Currently, China is endeavoring to reset its whole range of ties with Nepal in tandem with its newfound status of an emerging global superpower, following the policy of non-interfering, trustworthy and equally sovereign" closest neighbor. Its latest manner confirms this premise that china values Nepal as an important place in South Asia.

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