Nepal signed a framework agreement with China to advance Belt and Road Initiative (BRI). The agreement comes seven years after the initial agreement in 2017, marking a significant step towards implementing infrastructure projects under China’s global connectivity programme.
Key points of agreement between Nepal and China under Belt and Road Initiative (BRI)
- Concrete steps on BRI: Nepal has now signed a new framework agreement after joining BRI in 2017, which provides a concrete framework for the implementation of the projects.
- Agreement on Trans-Himalayan Network: Both countries have expressed their willingness to sign a Memorandum of Understanding (MoU) on Trans-Himalayan Multi-Dimensional Connectivity Network (THMDCN).
- Expansion of connectivity: The network focuses on enhancing connectivity in areas such as ports, roads, railways, aviation, power grids, and telecommunications.
Belt and Road Initiative
- The Belt and Road Initiative (BRI) was launched by China in 2013 with the aim of reviving the ancient Silk Road.
- Its aim is to promote trade, investment, and economic growth by linking Asia with Europe and Africa.
Belt and Road Initiative (BRI)
Main Components
- Silk Road Economic Belt: It focuses on increasing connectivity and cooperation between China and countries in Central Asia, Europe, and West Asia.
- 21st Century Maritime Silk Road: It is based on strengthening maritime cooperation between China and countries in Southeast Asia, South Asia, and Africa.
Objectives
- To encourage trade and investment in participating countries.
- To promote economic relations and connectivity globally.
Overview of China–Nepal Relations
Geopolitical Relations
- Nepal has tried to maintain a balanced relationship with both its big neighbours, India and China, in its foreign policy.
- China’s influence in Nepal has grown significantly in recent years, especially during India’s economic blockade of Nepal for about six months in 2015. This situation provided China with an opportunity to rapidly gain a foothold in Nepal.
- Political Intervention: China has actively intervened in Nepal’s politics and played a role in unifying the two communist parties, the Maoist Centre and the Unified Marxist–Leninist (UML).
- History and Ideological Links: China has had historical ties with the communist movement in Nepal, and especially with the Communist Party of Nepal.
- During the decade-long armed insurgency in Nepal, the Maoist movement received ideological, logistical and military support from China.
Implications of China’s growing presence in Nepal for India
- Security concerns: China’s growing influence in Nepal could lead to a strategic encirclement for India, posing a threat to India’s security.
- Impediment to access to resources: China’s infrastructure and economic investments could impact Indian investments and resources in Nepal.
- BRI and connectivity: Nepal’s involvement in China’s Belt and Road Initiative (BRI) could harm India’s interests.
- Difficulty in regional coordination: Nepal’s close ties with China give China strategic depth in South Asia, which could make it difficult for India to coordinate regional initiatives.