The growing influence of China in Nepal has been the topic of international discussion recently. This has been brought to light by a series of 12 agreements Nepal signed with China aimed at enhancing bilateral cooperation in various sectors, including trade, road connectivity, and information technology. These diplomatic gestures illustrate China’s growing geopolitical interest in Nepal.
Agreements Made between Nepal and China
The agreements signed by Nepal and China comprise of several Memorandums of Understanding (MoUs) ensuring cooperation between The National Planning Commission of Nepal and China’s National Development and Reform Commission. They also aim for enhancement in digital economy corporation, green and low-carbon development, agriculture, livestock and fisheries, science and technology, innovation, and human resources development. Furthermore, they also contain a mechanism to review the Nepal-China trade and payment agreement and a protocol for phytosanitary requirements for the export of plant-derived medicinal materials for Chinese medicine from Nepal to China.
Interestingly, Nepal declined China’s invitation to join China’s Global Security Initiative (GSI), maintaining that its best interests lay in maintaining a strategic balance between India, China, and the US.
Historical Background on China-Nepal Relations
Nepal has aimed to balance its relations with its two giant neighbors, India and China, as a part of its foreign policy strategy. Historically, China’s influence in Nepal has been particularly significant since the Six-Month Economic Blockade of Nepal by India from September 2015 onward. During this period, China intervened aggressively in Nepal’s politics, uniting the two communist parties, Maoist Centre and Unified Marxist-Leninist.
Economic Cooperation between China and Nepal
Economic cooperation between China and Nepal has strengthened over the years with a focus on trade, investment, and infrastructure development. Projects such as cross-Himalayan railways, ports, and hydroelectric power plants have fostered connectivity and contributed to Nepal’s economic growth. Nepal has also shown interest in China’s Belt and Road Initiative (BRI), aiming to improve infrastructure connectivity and trade facilitation.
Security and Defense Cooperation between China and Nepal
China and Nepal have strengthened their military ties through joint military exercises and increased defense cooperation. Further, China providing military aid to Nepal indicates a significant strengthening of their defense relationship.
Territorial Disputes between China and Nepal
Despite the cordial relations, there are ongoing territorial disputes. In a recent instance, China refused to acknowledge a portion of land in Nepal’s northwestern region—an area that Nepal had claimed in its own map in 2020.
Implications of China’s Growing Presence in Nepal for India
The strengthening relation between China and Nepal presents strategic and economic concerns for India, including potential security threats due to China’s expanding influence, competition over resources, challenges in regional coordination, and potential harm due to increased Chinese-backed infrastructure projects through BRI Initiative.
Importance of Nepal for India
From a strategic perspective, Nepal holds substantial significance for India due to shared borders with several Indian states and cultural and economic exchanges. Moreover, it serves as a ‘borderland’ flank against potential aggression from China. Ongoing defense cooperation, economic engagements, treaties of peace and friendship, and power sector cooperation all further underline the importance of Nepal for India.
Addressing the Challenges
To effectively manage the possible challenges arising due to China’s growing presence in Nepal, India needs to bolster development assistance, strengthen economic ties, and enhance people-to-people relations. Proactive engagement, multilateral initiatives, and regional cooperation are essential to counterbalance expanding Chinese influence in Nepal and ensure regional stability and prosperity.