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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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