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OPINION SEPTEMBER 29, 2023 | The Indian Eye 12
the ground, however, may not have
been as noticeable as it is being made
out to be. For example, much like the
special economic zone (SEZs) in the
Terai region, there were plans to de-
velop cross-border SEZs along the
Nepal–China border. However, the
MoU with China in 2016 to this effect
has not been implemented till now.
There are many challenges that
have affected Nepal–China relation-
ship in the past. One major challenge
has been chronic political instability
in recent years. As per the informal
agreements that led to formation of
the incumbent government headed
by Prachanda, the mantle of leader-
ship may have to be passed on to an-
other leader of the coalition after two
and half years. Such changes may in-
terfere with the momentum of policy
implementation and affect the image
of Nepal in the region. There are ob-
servers in Nepal who point out that
Nepal’s regional standing has plum-
meted so much that it was not invit- Of late, China is forcing Nepal to join various Chinese projects, i.e., the Global Security Initiative (GSI), Global Civilizational Initiative (GCI) and
ed to the G20 meeting in New Delhi the Global Development Initiative (GDI) (ANI)
while Bangladesh was given a chance
to participate in it. remark about India’s role in Nepal. militates against Nepal’s foreign pol- China. The cultural links that some
Another important issue has He said that Nepal had been in a los- icy goals. Prachanda should clarify people in Nepal often claim with Chi-
been the high interest rate levied by ing position vis-à-vis India in the field Nepal’s position on these issues. na do not point to a continued rela-
China for loans it has extended to of trade and commerce and it can get THE WAY FORWARD tionship anymore. China itself does
Nepal. The 2 per cent interest rate many more benefits from its trade not invoke these linkages currently.
China has negotiated for its loan to with China. Such rhetoric is often epal has a considerably China is quietly proclaiming its Pax
build the Pokhara International Air- accepted uncritically by the people large electorate wedded to Sinica in the region and beyond, of
port is being discussed in Nepal as of Nepal. However, the facts stated Nleft-leaning communist think- which Nepal should be wary of. Nepal
an uncharitable gesture, which raises above speak otherwise. The Chinese ing, who idealize China as its closest should avoid getting ‘trapped’ in the
questions about China’s long-term diplomats also had similar things to friend. Moreover, they reflexively ‘Five Fingers Policy’ of Mao Zedong.
strategic intention. This airport has say during the case of Millennium turn to China to balance India, a Nepal has a difficult task ahead
not been fully operational since its Challenge Corporation (MCC) and country with which they have deep in sustaining its relationship with
inauguration on 1 January 2023. The the US diplomats had rebuffed such and inerasable historical, geographi- China in the backdrop of growing
Chinese have claimed this airport as remarks. Such expressions only indi- cal, cultural and familial bonds. As it India–US partnership, US–China
part of BRI unilaterally, even though cate how desperate China is to snap happens in any such close association, rivalry and declining India–China
there was no BRI when Nepal had Nepal’s relationship with India, US proximity is often taken for granted relationship. Securing its own inter-
signed contract for this airport with and other friendly countries and be- and ignored, without objective anal- ests would require perceptive appre-
the Exim Bank of China. Prachanda tray a sense of anxiety about Nepal’s ysis of the costs of dissolution of such ciation of the evolving regional and
must, therefore, discuss the possibili- policy of seeking mutual trust with all. relationship. global geopolitics and dealing with its
ty of waiving off the loan for six civil- There is also the issue of cul- History is witness to the fact that two neighbors through effective and
ian aircrafts that Nepal has received tural difference. The exposure of China did not stand by Nepal when efficient diplomacy without getting
from China. These aircrafts have so Nepali people to Chinese tourists it passed through difficult times. Ne- caught up in the adversarial maze of
far been grounded due to technical, has not been very pleasant so far. In pal–China border has not been fully relationship among countries, Nepal
manpower and spares issues leading fact, when Chinese tourist stranded operational since the 2015 earth- regards important for its progress and
to loss of over NPR 2 billion. in Kathmandu due to COVID-19 quake followed by the COVID-19 development.
There is also the issue of luke- lockdown attacked the Nepal Police, pandemic even if China has ensured
warm response from the Chinese there was unnecessary anxiety in bi- continued flow of Chinese goods Saurav Raj Pant is a Visiting Fellow at
side to import from Nepal. China has lateral relations. Nepal was forced to while limiting flow of Nepali goods the South Asia Centre, Manohar Par-
allowed zero-tariff entry for 8,000 remain silent lest any lawful action into China. There has been a hue and rikar Institute for Defense Studies and
goods of Nepali origin, but this du- against the tourists would impair re- cry over the ‘text’ of the MCC com- Analyses (MP-IDSA), New Delhi.
ty-free arrangement has so far not lationship with China. pact but there has been no discussion Views expressed are of the author and
been implemented even after two Of late, China is forcing Nepal over the terms and conditions of BRI do not necessarily reflect the views of
years of the pandemic. This has led to join various Chinese projects, i.e., in Nepal. the Manohar Parrikar IDSA or of the
to Nepali goods rotting at the border. the Global Security Initiative (GSI), While managing relationships Government of India
Prachanda and his team need to get Global Civilizational Initiative (GCI) with both China and India can pres-
assurance for easy and barrier-free and the Global Development Initia- ent challenges, Nepal would general- The full version of this article first ap-
access to Nepali products that can re- tive (GDI). In fact, the GSI has been ly find negotiations with India to be peared in the Comments section of the
duce trade deficit with China. generally viewed as China’s version easier, given the deep-rooted histor- website (www.idsa.in) of Manohar Parri-
Recently, the Chinese Ambassa- of NATO. Such initiatives look like ical and cultural ties it shares with kar Institute for Defense Studies and Anal-
dor to Nepal gave an ‘undiplomatic’ a strategic alliance of some sort and India, as opposed to dealing with yses, New Delhi on September 21, 2023
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