Prachanda & Himalayan Xiopolitics

Source– The post is based on the article “Prachanda & Himalayan Xiopolitics” published in “The Times of India” on 26th September 2023.

Syllabus: GS 2 – Bilateral and regional groupings

Relevance- India and Nepal bilateral relationship in context of China

News– Nepal PM Prachanda’s visit to China from September 23 has resulted in numerous commitments and bilateral agreements.

How has the Chinese approach regarding India and Nepal relationship has undergone transformation?

Earlier approach- Until a decade ago, China was amenable to Nepal’s growing ties with India. China could not provide Nepal with the same level of support and assistance as India could deliver.

Current approach- China does not want a closer relationship between India and Nepal. The new Chinese ambassador in Kathmandu criticised India-Nepal relations. He has urged the Nepalese to strengthen their ties with China.

A representative from the Communist Party of China’s politburo attempted to convince the Nepalese government in July 2023 to consider recruiting Gorkhas for the People’s Liberation Army. The Nepalese government firmly rejected this proposal.

What is the Chinese foreign policy approach towards Nepal?

China’s earlier objective was primarily security oriented. It aimed to prevent Tibetans from fleeing to Nepal and exert strict control over the Tibetan community in Nepal.

When Tibetans are apprehended by the Nepalese Armed Police, they are often returned to China and placed in re-education or detention camps. Those reaching the UNHCR office in Kathmandu receive exit permits from Nepal’s immigration department.

Over 40,000 Tibetans transited through Nepal under a 1990 Gentlemen’s Agreement. China’s demand for the repatriation of Tibetan refugees raises concerns about Nepalese sovereignty.

China has been active in its efforts to unite various communist parties and factions in Nepal. It has financially supported favoured politicians, established Confucius Institutes throughout Nepal, and provided Chinese language teachers to Nepalese schools.

What are the issues in project implementation by China in Nepal?

The concerning aspects of projects carried out by Chinese firms in Nepal include escalating costs, projects awarded through nomination rather than international and transparent bidding processes, the supply of substandard materials, and the employment of Chinese workers.

For instance, the Pokhara Airport project ended up costing 85% more than the original estimates. Six Chinese aircraft, including two Xian MA60s and four Harbin Y12s, remain grounded, and Nepal Airlines has been unsuccessful in leasing or selling them.

Nepal signed the Belt and Road Initiative Framework Agreement with China six years ago. But many projects have not advanced significantly. Notably, the proposed rail link, initially suggested by King Birendra in 1973, has faced delays.

What is the difference between the Indian and Chinese approach towards Nepal?

Nature of assistance- China provides Nepal with modest grant assistance. The nature of this assistance differs from India’s support. In the fiscal year 2020-21, China provided a grant of $14 million, while India committed grant assistance of $6.32 million during the same period.

Connectivity- The 2016 Sino-Nepalese transit and transport agreement protocol granted Kathmandu access to seven Chinese sea and land ports for third-country trade.

However, most of the Nepal’s trade still passes through India. Kolkata and Visakhapatnam ports are significantly closer than Chinese ports.

In contrast to the open border between India and Nepal and India hosting Nepalese nationals, China maintains a closed northern border with Nepal.

Project implementation- In 2015, during a disruption in supplies to the Kathmandu Valley, China had promised to step in. However, currently, China’s petroleum supply to Nepal is nonexistent.

India has implemented a dedicated pipeline system to ensure uninterrupted and timely delivery, and further pipeline construction is underway.