Kathmandu
Blocking the Blockade
Nepali Prime Minister Pushpa Kamal Dahal Sharma’s forthcoming visit to China has ignited speculations regarding Nepal’s foreign policy trajectory and its implications for regional dynamics in South Asia.
In the intricate web of international relations, Nepal finds itself at a pivotal crossroads, balancing the interests and aspirations of major regional and global powers like China, India, and the United States. Nepali Prime Minister Pushpa Kamal Dahal Sharma’s forthcoming visit to China has ignited discussions and speculation regarding Nepal’s foreign policy trajectory and its implications for regional dynamics in South Asia.
Despite China’s attempts to subtly enhance its influence and diminish the prospects of the United States and India in Nepal, the current regional dynamics, security frameworks, and intense competition from New Delhi and Washington give Nepal various alternatives, making it difficult for China to achieve its goals.
Consequently, China finds itself in a challenging position in Nepal, leading to its increasing frustration. But what are the critical factors that shape the dynamics of China-Nepal relations? Is China’s recent surge in economic investment fostering important infrastructure projects while simultaneously creating a significant dependency on Chinese support? How do geopolitical considerations, particularly India’s influence in the region, affect the bilateral ties between China and Nepal? In what ways does the evolving political landscape in Nepal, including shifts in leadership and policy direction, complicate this relationship? Ultimately, how is the interplay of these elements significantly redefining the future of China-Nepal relations?
Historical context and diplomatic ties indicate that Nepal’s relationship with China spans centuries and is characterised by mutual respect, cultural interactions, and strategic dialogues. Historical records reveal exchanges between monks and scholars in ancient times that laid the groundwork for formal relations.
Establishing diplomatic ties in 1955 marked a significant milestone, fostering a cordial connection based on the principles of peaceful coexistence. This long-standing relationship has been further deepened through various agreements and collaborations in trade, culture, and infrastructure.
However, Nepal’s geopolitical journey has not been without challenges. As Nepal navigates the complexities of its geopolitical landscape, recent issues with India have prompted a re-evaluation of its foreign policy approach. In particular, the blockade imposed by India during the aftermath of the devastating 2015 earthquake that killed around 9000 people highlighted Nepal’s vulnerabilities and the need for diversified external support.
Despite India providing aid during this crisis, the perception of media jingoism and India’s unilateral actions during the subsequent constitutional changes ignited a backlash among Nepalese citizens. The blockade, criticised as an imposition of economic pressure, was a stark reminder of Nepal’s vulnerabilities. This was not the first instance of an economic blockade by India; similar tactics had been employed in the past, such as in 1989 and the 1960s. However, the 2015 episode was different, symbolising a critical juncture that showcased China as a potential ally.
With India’s supply routes strained, China stepped in to offer much-needed fuel, sending trucks across the northern border to support Nepal during a crisis. This timely intervention demonstrated China’s capacity to serve as a significant alternative to India and reshaped the political and economic landscape between the two nations.
The blockade imposed by India during the aftermath of the devastating 2015 earthquake that killed around 9000 people highlighted Nepal’s vulnerabilities and the need for diversified external support.
This blockade, perceived as an economic stranglehold, forced Nepal to confront the reality of its heavy reliance on India for goods and services, and it raised concerns about sovereignty and independence in its foreign relations. In this context, China emerged as a crucial ally for Nepal by providing timely assistance, including petroleum supplies, during the crisis.
This support encouraged Nepal to seek a more balanced diplomatic and economic relationship with China, exploring avenues that could mitigate its dependence on India.
In December, Prime Minister Sharma prepares for his first visit to China. The meeting agenda is significant, focusing on several critical aspects. Among those three major ones are:
1. Implementation of Pending Agreements: Nepal aims to expedite the execution of previously signed agreements with China to enhance bilateral cooperation in various sectors.
2. Belt and Road Initiative (BRI): The discussions are expected to centre around Nepal’s involvement in China’s ambitious BRI, which aims to enhance connectivity and infrastructure development across Asia and beyond. For Nepal, participation could mean transformative projects that address pressing economic and transportation needs.
3. Loan Conversion into Grants: Nepal is reportedly seeking to renegotiate existing loans from China into grants. Conversation of Nepal’s US$250 million loans with a 2% interest rate to build the Pokhara Regional International Airport into a grant. Pokhara Regional International Airport is not currently operationalised and is not generating revenue. Nepal considers India responsible for it as it has rerouted flights to Nepal, affecting the operationalisation of Pokhara Airport. Therefore, the Nepal government has officially requested China to convert it into a grant. This request indicates Nepal’s desire to alleviate fiscal pressures while continuing to engage with China.
These agenda items signify a conscious effort by Nepal to solidify its relationship with China, leveraging strategic opportunities while seeking to relieve financial burdens. While forging closer ties with China presents Nepal with promising prospects for development and investments, it is essential to recognise the potential pitfalls of aligning too closely with one global power. A tilt towards China could provoke tensions with India and awaken Washington’s concerns, especially amid a backdrop of increasing geopolitical competition. Nepal’s geographical position as a landlocked nation between China and India grants it unique strategic leverage. In terms of protecting sovereignty and long-term interests, Nepal’s challenge lies in attracting investments and infrastructure development and ensuring that these collaborations do not compromise its sovereignty and long-term interests.
As it gets involved in China’s economic initiatives, Nepal’s leaders must remain vigilant about the implications of such partnerships, prioritising the country’s well-being in the face of external pressures. In these turbulent times, maintaining a balanced diplomatic engagement will be paramount. Continued dialogue and collaboration with multiple nations can help mitigate potential risks associated with overdependence on any single country.
The evolving dynamics of Nepal-China relations present both opportunities and challenges. While enhanced ties with China could lead to economic development and infrastructure advancements, Nepal’s leadership must heed history lessons. Navigating relationships with major powers necessitates a careful balance that prioritises Kathmandu’s interests and regional stability. The stakes for Nepal have never been higher as it seeks to chart its course amidst the currents of international politics.
The need for strategic foresight, proactive diplomacy, and diverse partnerships will be central to ensuring that Nepal’s foreign policy reflects its aspirations and safeguards its sovereignty in the complex and changing geopolitical landscape. Time will reveal the successes and challenges that lie ahead, but the commitment to a balanced and independent foreign policy will be essential to Nepal’s future.
The writer is associated with the National University of Sciences and Technology, Islamabad as an Assistant Professor at Department of Government and Public Policy. She can be reached at farahnaz@s3h.nust.edu.pk
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