Saturday, April 18, 2026 12:42 AM

India, China and America

On/Off the Record

By P.R. Pradhan

Nepal exists in a strategic geopolitical location in between India and China and the USA wants to develop its base in Nepal to act against China and India as well. Nepal’s adoption of the Millennium Challenge Corporation (MCC) is an American design for developing its base in Nepal. Moreover, the USA is waiting for Nepal’s approval on the SPP (Strategic Partnership Program), which is known as a military partnership between Nepal and the USA under the Indo-Pacific Strategy, specially developed to counter China for the time being and later against India. If the Nepali Congress will lead a government, it is all set to adopt SPP.

The global power setup is in the process of a change. The unilateral domination of the USA is likely to be declining. America is in a domestic crisis, Europe is divided, and the Russia-China-Iran strategic partnership has further strengthened.

India’s partnership with the USA has now been questioned. Of late India has softened its aggressive anti-China attitude and continued its relations with Russia.

Nepal’s security strategy, as well as, foreign policy is in chaos. Neither India nor China is happy with the act of the government. The project under the MCC has been accelerated, on the other hand, Nepal is delaying approval of the already agreed projects under the BRI. Moreover, from the act of the government, both neighbors have been irritated. Printing of the 100 rupee notes with the new political map of the country has irritated India, it seems, Nepal has permanently lost the Kalapani-Limpiyuadhara-Lipulekh portion as it has not been able to hold talks on the issue and India is one-sidedly constructing a road via this Nepali territory, presently occupied by India, linking the Chinese border.

Different America-funded INGOs have been mobilized to manipulate media, so-called intellectuals and academicians against China. A narrative of the Chinese debt trap has been developed. Just recently, some media persons were mobilized to state that the Chinese debt for the construction of the Pokhara International Airport was agreed upon 5 % interest rate, despite the fact that 50 percent of the construction cost was on grant and the rest 50% of the project amount was provided at a 2% interest rate. The government didn’t wish to refute the propaganda. Regarding the Chinese debt trap, the reality is that Chinese debts contribute only 3 percent of the total debts Nepal has received from international financial agencies. The two newly constructed international airports in Pokhara and Bhairahawa have not come into operation due to the non-cooperation from India. If the government makes a strong commitment to operate the two airports, it is not a big problem. The chief of the Bhairahawa International Airport has given a 10-point suggestion to bring the two airports into operation. If the government, say Prime Minister Pushpakamal Dahal, gives priority to the suggestions submitted by the CAAN chief at the Bhairahawa Airport, it is possible to operate commercial flights from the next season or say from the winter season. The ten-point suggestion is not going to add any additional financial burden but the CAAN officials, the Civil Aviation Ministry, the Labor Ministry, the Health Ministry, and the PM’s Office should be committed to the operation of the two airports. Furthermore, Nepal should ink the BRI air-connectivity with China from which more Chinese aircraft with an increasing number of Chinese tourists will fly to Bhairahawa and Pokhara from different Chinese cities.

Nepal has very limited options to play in its foreign policy. There are no special relations with India. Nepal should maintain equidistance relations with both the countries including other friendly countries. No special priority should be given to its relations with the USA. Nepal should not make suspicious India or China and should stand as a security wall between India and China. This is the reality. Unfortunately, we cannot expect such a policy from the political leaders and political parties of the day. Therefore, both neighbors should develop an understanding of the significance of the presence of a permanent institution which is capable of maintaining balanced relations with the two neighbors and take a strong stance for maintaining a security wall between the two nations. The role played by the institution of monarchy has already been tested. Therefore, to avoid possible security threats, both neighbors should agree upon the restoration of the institution of monarchy in Nepal.

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