Even though Nepal and China signed nine pacts during Nepali Prime Minister KP Sharma Oli’s visit to China, none of the pacts were new and no new investments announcements have been made so far
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Nepal and China signed nine agreements during Nepali Prime Minister KP Sharma Oli’s ongoing visit to China.
In a break from tradition, Oli chose China for his first foreign visit after becoming the premier in July. Traditionally, Nepali leaders have visited India on their first foreign visits but there have been exceptions. Such moves are seen as attempts by Nepali leaders to pivot from India and look for China as an alternative to India in terms of trade, investment, and bilateral relations.
Oli was received by Chinese Prime Minister Li Qiang at the Great Hall of the People in Beijing on Tuesday. Later, the two sides signed nine pacts.
Oli met Chinese President Xi Jinping on Tuesday. Chinese state media reported that Xi told Oli that China would help Nepal become a “land-linked” nation from a landlocked nation and would continue to support economic development “to the best of its ability”.
Oli is scheduled to address the Nepal-China Business Forum on Wednesday and deliver a keynote speech at Peking University, according to Kathmandu Post.
Nepal and China sign 9 pacts
Nepal and China reached nine agreements during Oli’s meeting with Li on Tuesday.
The nine agreements are:
1. Letter of exchange on the construction of the Tokha-Chhahare tunnel
2. Memorandum of Understanding (MoU) on Nepal-China trade enhancement
3. Exchange of certificate on the completion of Basantapur Durbar reconstruction in Kathmandu
4. Protocol for export of thermally processed buffalo meat
5. MoU on development plan (2025-2029) between the Finance Ministry and the China International Development Cooperation Agency
6. MoU on economic and technical assistance
7. Exchange of letters on cash assistance of 300 million yuan
8. MoU on Chinese language teachers
9. MoU between Nepal Television and China Media Group (CMG)
No new deal signed, BRI deal delayed
Even as nine agreements were signed and exchanged, none of them was new and all of these deals had been previously agreed, according to Reuters.
The news agency further reported that even though China has reiterated familiar pledges of supporting Nepal, no new investment has yet been announced during Oli’s visit.
Separately, Kathmandu Post reported that Nepal and China have delayed the signing of the revised Belt and Road Initiative (BRI) deal.
The BRI is China’s flagship programme for infrastructure development in the world under which it has developed a host of projects in several countries, including roadways, railways, and ports. These projects have been accused of plunging host countries into debt traps and have been seen as a strategy to develop vassal states instead of developmental partners. Nepal is a signatory of the BRI.
Even though the revised deal was not signed during Oli’s visit, Nepali officials told the Post that bilateral negotiations are going on and the agreement could be signed at anytime.
Even though Nepal is a signatory of the BRI, concerns around falling into debt trap like Sri Lanka have been raised within Oli’s coalition as well.
Reuters reported that owing to such concerns, the Nepali government has decided to develop projects under BRI only on grants and not on loans.
