By Asmit Kuikel
The CPN (Maoist) and the Seven-Party Alliance (SPA) signed the Twelve-Point Agreement, which put an end to the conflict. On November 21, 2006, the Comprehensive Peace Agreement (CPA) was signed, bringing the conflict to a formal end and beginning the post-conflict era. Infrastructure development is essential for Nepal to stand again after the ten-year-long destructive civil war and achieve its aim of “a prosperous Nepal, a happy Nepali.” The grand Belt and Road Initiative (BRI) of China started to seem like an effective tool. The two nations’ growing collaboration has aided in accelerating and concluding China-funded development projects in the fields of connectivity, essential infrastructure, agriculture, tourism, commerce, and industrial expansion. This has improved confidence that ongoing or forthcoming megaprojects can be completed on time and according to public expectations.
Projects funded by China have advanced by overcoming difficulties often encountered in infrastructure development. The BRI, which Nepal formally signed in 2017, was established in 2013 to increase connectivity, investment, commerce, and people-to-people interactions. While the Chinese government prioritized participation in supporting infrastructure development as a major component of the BRI, some projects have been completed ahead of schedule while others are on schedule. The World Bank predicts that building Nepal’s essential infrastructure will cost US$18 billion. China’s investment has been selected as the primary source of assistance for accomplishing this.
From the perspective of Nepal, China is both politically and economically significant, since the northern neighbor can help maintain a stable relationship with its southern neighbors while also benefiting from their economic growth through loans, investments, and aid. There is a challenge with loans from the northern neighbor due to our economic situation, even if BRI may be advantageous for us. Since our nation’s economy is currently not so good, it may be difficult for us to pay back our debts and interest, with Pokhara International Airport serving as a possible example. So, we are at risk of falling into a debt trap.
Political Cooperation from Northern Neighbor
The National Congress of the People’s Republic of China (NCPRC) presented office supplies worth more than 500,000 RMB to the Nepali Legislature-Parliament on June 18, 2007, through the then-Chinese Ambassador. For the first election of the constitutional parliament, the Chinese government provided supplies to the Nepali election commission. The supplies, which were given to the then-Nepali election commissioner, Bhoj Raj Pokharel, by the then-Chinese ambassador Zheng Xianglin, were worth 90 million Nepalese rupees. The ambassador voiced his support for the election, for peace and stability in Nepal, and his wish that the leaders of the country’s political parties and the government would peacefully resolve the country’s current political impasse. China has consistently favored stability and peace in Nepal.
National peace and stability are highly desired and motivated by the Nepalese people. China, a friendly neighbor, thinks that all Nepalese and political parties may work together to bring about the constitution drafting and peace process in Nepal. China has instructed key political party leaders not to support ethnic federalism and a quick and inclusive constitution to maintain peace and stability in Nepal.
Peace and stability require economic, infrastructure, cultural, and social development, as well as a proper security mechanism for a peaceful society. China was committed to fostering friendship and cooperation with its neighbors to further their development. China has improved infrastructural connections during the past few years to enhance bilateral economic, commercial, and human interactions between China and Nepal. China increased its financial support for the Nepal Army by 50% and has established a new security partnership with Nepal that is based on equality, mutual trust, and win-win outcomes. Exchanges also take place regarding cooperative military exercises and training.
Nepal is crucial to China’s geopolitical interests. Nepal is strategically significant for China since China’s Tibet is a worry and shares a border with that country. In terms of commerce and trade, Nepal might develop as a gateway for the country’s trade with China. Nepal may be crucial to China’s railway project to India, which China regards as a valued project.
Infrastructure Development and Economic Assistance
China is a trustworthy and reliable development partner for Nepal, contributing support to the Nepal-China Himalayan Friendship Society for the construction of community buildings in the conflict-affected districts of Dolakha, Rasuwa, and Sindhupalchowk. These districts are situated in the hilly north of Nepal, closer to the Tibetan border. China provided 1 billion yuan in grant assistance to Nepal in 2016 and signed a Memorandum on the Development of a Cross-Border Economic Zone to promote the construction of a facility along the Nepal-China border. Chinese investors and tourists are increasing their interest in Nepal, so the two sides should capitalize on the new opportunities created by the BRI and enhance cooperation in the fields of cross-border connectivity, building physical infrastructure, promoting trade, tourism, investment, and people-to-people relations. China and Chinese enterprises have invested in major construction projects in Nepal, such as the Melamchi water project, the Chariyal Hydro project, the Tatopani Dry Port, and the Kathmandu Ring Road. China has also provided Nepal with human resources training in recent years. China is providing 75% of FDI in Nepal, with 35 projects under construction. These include the upgradation of the Rasuwagadhi-Kathmandu Road, Kimathanka-Hile road construction, Dipayal to the south border, Tokha-Bidur Road, Galchhi-Rasuwagadhi-Kerung 400kv transmission line, Keyrung-Kathmandu rail, Tamor hydroelectricity project, and Phukot Karnali Hydroelectric Project.
Conclusion
The then-foreign minister of China stated that China will continue to firmly support Nepal’s efforts to protect its territorial integrity and national sovereignty, as well as its ongoing exploration of development avenues that are appropriate for its unique national circumstances. Regarding its primary interest in territorial sovereignty and national security, China is completely happy with Nepal’s commitment to the One-China policy. Every succeeding Nepali administration has vowed to prevent any force from taking part in any anti-China activity.
For many years, the Chinese government and people have supported Nepal, and the two peoples share a close bond. Nepal is dedicated to fostering people-to-people contact between China and Nepal as well as mutual understanding and goodwill. Economically, the two sides advocate for increased practical collaboration in a variety of areas, including hydropower, agriculture, building infrastructure, culture, youth, women, and inter-party exchanges. Investments made in Nepal by private Chinese enterprises will boost the country’s growth.
The writer is a research scholar at the Department of Conflict, Peace and Development Studies, Tribhuvan University and has a fellowship in International Relations 2019, ISAS, Sichuan University, China.
The views expressed in this article are the author’s own and do not necessarily reflect People’s Review’s editorial stance.
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