China Announcement new Aid to Nepal

By Muhammad Ali

Recently, china announced Rs15 billion (800 million RMB) grant to Nepal to invest in projects designated by Nepal for the year 2022. The announcement was made by Chinese Foreign Minister, who is also the state councilor of China, during the bilateral visit of Nepal Foreign Minister to Qingdao.

The foreign minister of Nepal was on a visit to China, the first high-level visit from Nepal to the north since the formation of the incumbent Nepalese government in July last year. This new grant is further to the grant declared by the Chinese President to Nepal in October, 2019.

During official level talks between Nepalese President and Chinese President in October 2019, the latter had announced a 3.5 billion RMB grant to Nepal for two years. However, both sides were unsuccessful to negotiate on how to use the amount in the wake of the Covid-19 pandemic. Nepal has yet to choose the schemes to be funded under the financial contribution announced by the Chinese president.

The foreign minister of Nepal visit to China follows two trips from the north in March and July by the Foreign Minister of China and head of the international department of the Chinese Communist Party, respectively. During the meeting the foreign ministers of Nepal and china also deliberated the developing condition in the Taiwan Strait.

The Chinese foreign minister is learnt to have said that the US House Speaker visit to Taiwan a complete political provocation. According to Chinese side the move extremely dishonored the commitments made by the United States and violated China’s sovereignty. The trip o US House Speaker was considered against the Chinese sovereignty and territorial integrity, maintaining non-interference in internal affairs. As the trip also violated the rudimentary standard of international relations, while siding with the Taiwan Strait.

The foreign minister of Nepal reiterated Nepal’s commitment to the one-China policy and guaranteed that Nepali territory will not be permitted to be used for any activity against China. The Chinese side also guaranteed that it will positively consider Nepal’s request for chemical fertilizer and a feasibility study for founding a chemical fertilizer plant in Nepal. Previously too, Nepal and China had held several rounds of talks on supplying chemical fertilizers from China.

The state councilor and foreign minister of China agreed to assist Nepal’s agricultural sector. He also agreed to reassure Chinese investment in developing the manufacturing capacity of Nepal and improve collaboration in the export of Nepali tea and traditional medicinal herbs.

On the opening of border points between Nepal and China that have seen restricted movement of goods and cargo since the start of the Covid pandemic, the two foreign ministers decided to form a joint mechanism for pandemic control at border ports.

Nepal and china sides also agreed to form a mutual technical committee to make required arrangements for running the present mechanism of Nepal-China Joint Boundary Inspection Committee. This was in principle agreed last month during a virtual meeting between officials from the two sides.

The foreign minister of Nepal and china also decided to open Rasuwa-Kerung and Tatopani-Khasa ports for two-way trade and Hilsa-Pulang port for one-way trade, which will take place as soon as the fresh wave of Covid pandemic in Tibet Autonomous Region of China is controlled.

In support of the people affected by disasters and natural calamities in different parts of Nepal, the Chinese foreign minister announced a package of RMB3 million worth of disaster relief materials as per Nepal’s request. Furthermore, China will also provide Nepal with medical items and logistics worth 2million RMB.

The Foreign Ministry said Wang also announced that China will provide additional Covid vaccines and Covid-related medical assistance as much as Nepal may need. The foreign Minister of Nepal requested further support towards consolidation of health infrastructure and services as well as transfer of new skills in cancer treatment in Nepal.

The Chinese foreign minister announced that China would provide support to the formation of Chimeric Antigen Receptor T cells (CAR T cells) manufacturing lab at the Civil Service Hospital, Kathmandu to treat blood cancer and provide necessary training to Nepali health professionals. This is hailed as a huge step between the two countries in the health sector.

The Chinese foreign minster also announced that all the Nepali students seeking to return to China following the disruption caused by the pandemic can proceed for visa procedures, while fulfilling the health procedures, to resume their studies.

Hundreds of Nepali students studying in China who returned home after the pandemic have been stuck in Nepal owing to Chinese restrictions and are desperate to return to their universities to continue their studies.

The Chinese foreign minister and the foreign minister of Nepal discussed the implementation of past accords signed during Chinese president visit to Nepal, jointly advancing the Belt and Road Initiative with high quality projects. Nepal and China signed up the BRI in May 2017 but both sides have failed to execute a single project.

The two sides will negotiate and sign the implementation plan for the joint construction of projects under the BRI as soon as possible, and hold a joint economic and trade committee and a working group on unimpeded trade within this year, according to a Nepali official who was present during the ministerial meeting.

The foreign minister of Nepal reiterated that Nepal firmly adheres to one-China policy and will never allow the use of Nepali territory to engage in any activities that oppose China and harm Chinese interests. This firm commitment will never finish.

Nepal supports China's genuine position on internal affairs such as Tibet, Xinjiang and Hong Kong. The Chinese statement also claimed that Nepal agrees with the concept of the Global Development Initiative and the Global Security Initiative, and is willing to actively study and participate in the venture.

The Chinese foreign minster on behalf of his government appreciated the adherence of successive governments of Nepal to the one-China principle and abidance by their commitment to not allow any forces to use Nepali territory to engage in anti-China activities, according to the Chinese foreign ministry statement.

China and Nepal decided to pursue the non-interference in internal affairs of other countries , the ‘excellent rule’ of international relations.In addition, the two sides agreed to strengthen cooperation in judicial affairs, combating cyber cross-border crimes, border management, joint prevention and control, and ports.

The Chinese foreign minister announced that China will use the aid to Nepal to support the feasibility study of the China-Nepal cross-border railway, and send experts to Nepal to conduct surveys within this year. The zero-tariff treatment for 98 percent of the tax items that China has granted to Nepal will come into effect on September 1, and support the Nepali side to make good use of the dividends of this policy to expand exports to China.

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