Nepal-China Relations: Is Shishir Khanal Silent on the BRI in Beijing?
Image source, fb/Sishir Khanal
During Foreign Minister Shishir Khanal’s visit to Beijing, both sides expressed commitment to the rapid implementation of previously agreed projects and programs, yet the Ministry of Foreign Affairs’ statement made no mention of the Belt and Road Initiative (BRI).
Acting Nepali Ambassador to Beijing, Roshan Khanal, stated that Nepal’s stance on participation in the BRI remains unchanged from decisions made by the previous government.
“However, further discussions on specific projects are still pending. Gradually, separate consultations on technical and financial aspects will follow,” she said.
“The minister’s focus was mainly on developing network and infrastructure linking Nepal and China, concentrating on upgrading border-adjacent roads to be of high quality and accessible year-round.”
She also mentioned expectations for Chinese assistance in digital infrastructure and technology transfer, assuring that the new government intends to maintain consistent relations with China.
No new discussions on loans or grants occurred during the visit. Khanal’s four-day visit concluded on Wednesday.
On Monday evening in Beijing, Chinese Foreign Minister Wang Yi held talks with the delegation led by Khanal. Additionally, Foreign Minister Khanal met with top leaders of the Communist Party of China.
The Chinese Foreign Ministry stated China is willing to work with Nepal to develop a high-quality BRI concept.
A Decade of Nepal’s Engagement with the BRI
Though Nepal signed a Memorandum of Understanding with China on the Belt and Road Initiative (BRI) in 2017, it has yet to make significant decisions to implement the projects.
At the 2019 BRI Forum, Nepal presented itself more as an observer to the initiative.
In 2024, both countries signed a BRI framework agreement, which ensures provision of financial assistance.
This framework includes projects such as the Tokha-Chhahare tunnel route, Hilsa-Simikot road, Kimathanka-Khandbari road and bridge, and the cross-border Jilong-Kerung-Kathmandu railway.
Also included are the Jilong-Kerung-Rasuwagadhi-Chilime 220 kV cross-border transmission line, Madan Bhandari University, Kathmandu Scientific Center and Science Museum, China-Nepal Industrial Friendship Park in Damak, and the Jhapa Sports Athletics Complex.
Image source, MOFA/X
The Chinese Foreign Ministry’s statement about the BRI emphasizes China’s readiness to be a reliable and trustworthy neighbor and partner in Nepal’s development and modernization.
“China wishes to jointly establish a high-quality Belt and Road concept with Nepal and provide cooperation in electricity grids, highways, ports, and aviation that will help transform Nepal from a landlocked to a land-connected nation,” the statement reads.
‘Hope Amid Ambiguity’
Former Deputy Executive Director of the Institute of Foreign Affairs, Rupak Sapkota, noted that despite the absence of explicit mention of the BRI, the continuation of previous agreements could spark cautious optimism.
“China and Nepal have done extensive groundwork building a cooperation structure under the BRI umbrella. It seems the new government will not step back from that,” Sapkota said.
“Nepal’s BRI projects have not advanced so far, but China has consistently treated Nepal as a balanced partner within the initiative.”
Image source, @EoNBeijing
Sapkota expressed optimism, noting that work is underway on more than half of the ten proposed projects for 2024.
“Project surveys are ongoing at some locations, while investment structures are being developed in others. Even after this government took office, the Ministry of Finance has corresponded with China regarding the Rasuwagadhi-Kerung transmission line,” he said.
“Studies and assessments related to the proposed roads and railways under the BRI framework continue. The absence of the term ‘BRI’ will not affect bilateral economic cooperation.”
During Chinese President Xi Jinping’s 2019 visit to Nepal, a detailed project report agreement for the Kathmandu-Kerung railway was signed.
Chinese technical experts are finalizing their report and have informed the Nepali side accordingly.
‘Loans Are Necessary, Grants Should Also Be Sought’
Former Nepali Ambassador Krishna Prasad Oli believes the BRI framework agreement alleviates unnecessary fears about the initiative in Nepal.
“Given the current global scarcity of financial resources, there is potential with neighboring China. Loans must be taken, and grants should be sought. Otherwise, substantial development is unlikely,” he said.
“During former Prime Minister KP Sharma Oli’s tenure, concessional loans were discussed, and development programs can advance through such debates.”
Ambassador Oli emphasized that existing agreements cover digital economy, human resource development, technology transfer, and more, all of which should continue.
“The Nepali government needs to create a supportive system for staff to implement projects and foster an environment to encourage Chinese private investors,” he stated.
“There are misconceptions about the BRI in Nepal; however, it is essentially an initiative to improve roads, infrastructure, transport, networks, and trade links.”
‘Technical Dialogue Amid Sensitive Geopolitics’
Image source, Getty Images
Chinese scholar Gao Liang, familiar with Nepal, observes that Nepal is operating in “an extremely sensitive geopolitical environment” and may be deliberately overlooking the BRI in certain spaces.
“This is a technical effort to balance the concerns of geopolitical stakeholders. Its impact will need close observation in the days ahead,” he said.
“Both sides have conducted extensive discussions and reached agreements on connectivity, investment, trade, and technical cooperation.”
Gao emphasized the importance of focusing on implementing prior agreements and noted that China is keeping the door open for bilateral cooperation.
The main question now hinges on Nepal’s level of commitment and sincerity in advancing cooperation with China.