An important agreement was signed in Beijing today, paving the way for China to make major inroads into Nepal. Seven years after the initial understanding to make Kathmandu part of Beijing’s Belt and Road Initiative, or BRI, today’s agreement outlines how the projects will be executed.
Breaking with the tradition of making New Delhi the first port of call of a Nepali Prime Minister after the election results, KP Sharma Oli chose to go to Beijing instead. He is in China since Monday to work closely with Xi Jinping and finalize the deal.
“China and Nepal today signed the framework for Belt and Road cooperation,” Nepal’s Foreign Office said in a post on X today, but did not share any further details.
Sources familiar with the agreement have said today’s deal means the two countries will not plan and coordinate the details of each project. It also paves the way for China to finance these projects and exactly how each project will be financed by Beijing.
The Government of Nepal and the Government of the People’s Republic of China today signed the Framework for Belt and Road Cooperation. pic.twitter.com/6oTlDvTzIe
– MOFA of Nepal?? (@mofanepal) 4 December 2024
In 2017, Nepal agreed in principle to become part of China’s mega Belt and Road project – a vast network of roads, transport corridors, airports and rail lines that would connect China with the rest of Asia, Europe and beyond. Is. However, no progress was made in the last seven years due to lack of proper framework to implement them. Kathmandu also had to struggle to find political consensus on this issue. This now appears to have been resolved with today’s agreement.
China’s Belt and Road Initiative, though ambitious, has been a red flag for many countries due to Beijing’s suspicious behavior and ulterior motives. Many countries have fallen into a debt trap, often referred to as China’s “debt diplomacy”, in which China builds a mega project on loan to a smaller country in terms of economy, and when the country cannot repay the loan or interest, If it finds it, Beijing either takes it over. Projects of a lifetime or makes a deal to further his expansionist agenda.
China’s Belt and Road Initiative also has a history of ignoring national security concerns and violating the sovereignty of other countries.
Many leaders in Nepal’s government and opposition are concerned about rising debt concerns in an already troubled economy. Even within Prime Minister Oli’s government, there is a heated debate over the potential risks in mega projects executed by China. Nepal Congress, a key ally of PM Oli’s party, has strongly opposed any project funded by Chinese loans.
China had given a loan of more than $200 million for the airport project in Pokhara, Nepal’s second largest city. Despite serious concerns raised by India, Nepal went ahead with the project and opened the airport last year.
But due to lack of international flights the airport has had to suffer losses. This may be partly due to low demand from airlines, but also due to India’s refusal to allow aircraft to use its airspace.
Pokhara, located about 120 kilometers from Kathmandu, is less than 20 minutes from the Indian border by commercial flight. India had to close its airspace due to national security compulsion as Kathmandu ignored New Delhi’s concerns that China could use the airport to deploy its military aircraft and helicopters – a problem for New Delhi. There is a big national security threat.
