Region 
 

Kathmandu

Look North

The time has come for Nepal to decide whether it will look south
or north. It must now reduce its dependence on India and develop
a more meaningful relationship with China.

By Daniyal Talat | August 2020

Nepal is a landlocked country and relies either on India or China for its imports and exports. Its imports from and exports to different countries must pass through Indian ports. That is why its foreign trade is slanted towards India. This reliance on its southern neighbour has further expanded between 2000 and 2010. As indicated by a study by the Nepal Rastra Bank (NRB), India’s share of Nepal’s exports increased by four times and imports jumped by three times compared to the 1990s. At the other end, the China route was not developed on account of the mountainous terrain.

However, now Nepal and India have developed a border dispute and Nepal must take its ties with China to a new level. India must be told in clear terms that it cannot be allowed to become the bully of the region and that all countries need to protect their sovereignity and identity. It is a good thing that this realization has dawned on Nepal and it is now devloping its own independent voice. In its rivalry with China, India cannot simply muzzle smaller nations and territories in the region.

The 2015 Nepal blockade by India which started on September 23, created an emergency for Nepal’s because of its high dependence on its southern neighbour; the blockade affected Nepal and its economy tremendously and was an eye opener. It was after the blockade that Kathmandu sought access to Chinese ports to lessen its reliance on India. Officials from Nepal and China concluded a protocol during a meeting in Kathmandu, giving Nepal access to the Chinese ports of Tianjin, Shenzhen, Lianyungang and Zhanjiang. Nepal has also consented to a few security arrangements with China and operationalized outskirt security collaboration. Nepal has insisted on its obligation to the “one China principle,” acknowledging that Tibet is an internal problem of China. In addition, it has vowed not to allow any enemy of China on its soil and this has bonded their relationship further.

In 2019 Chinese President Xi Jinping wound up two days of meetings in Nepal with independent arrangements for a rail connect to Tibet as the Himalayan country tries expanding connectivity to Beijing.

Nepal has an interesting role as an international balancer between India and China and will make a significant partner for the two nations in the future.

China and Nepal have an immediate internet association now, which implies that Nepal would no longer be reliant on India for internet. Prior to this, India had the advantage of disconnecting internet services to Nepal. China has set up an immediate connection with Nepal, regardless of the obstruction of the Himalayas. Slowly China is replacing India in Nepal. The areas where India still has an advantage over China is its presence in Nepal’s way of life, language and social life. The absence of the Mandarin language in Nepal has been referred to by certain specialists as an obstruction to further expanding China-Nepal relations. However, China is taking steps to increase its presence in Nepal’s daily life. Some tuition schools in Nepal have reportedly consented to making Mandarin a mandatory subject in their curricula in return of funding from China.

Baburam Bhattarai, former Prime Minister of Nepal, said, “China is slowly increasing its political and cultural ties to Nepal. There is already a relationship between the Communist Party of China and the Nepal Communist Party. China is also growing its soft influence in Nepal through China study centers and businesses.”

China is also the largest source of foreign direct investment (FDI) in Nepal. Chinese speculators resolved to spend over $8.3 billion in Nepal during the Nepal Investment Summit in Kathmandu in March 2017. China has made FDI in Nepal in 2015-16, 2016-17 and 2017-18 in hydropower, cement, medicines and tourism.

Nepal has an interesting role as an international balancer betweeng India and China and will make a significant partner for the two nations in the future. Regardless of whether Nepal inclines toward one nation or the other or decides to remain neutral, its political and socio-economic growth and development will be influenced. Today China affects Nepal’s lifestyle immensely and it is obvious to the Nepalese that the Chinese are good businessmen and they are in Nepal to stay.

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