PM Oli’s Forthcoming Visit To China: Will The Achievement Be Complete?

Oli's upcoming visit to China will focus on the implementation of agreements and agreements reached in the past, the Prime Minister's party CPN-UML has said. Preparations are being made for a visit to China.

Nov. 29, 2024, 11:51 a.m.

After India's invitation was not received, Nepal's Prime Minister Oli has made public his first foreign visit to China from December 2-6, 2024, and has come to the media including social networks. It is also said that the visit is seen to strengthen bilateral relations. It is unfortunate that the Indian media is promoting Nepal's Prime Minister KP Sharma Oli's visit to China as a sign of bitterness in the relationship between Kathmandu and New Delhi.

However, instead of bemoaning the sovereign nation's choice in terms of its diplomatic engagement, this so-called "break with tradition" should prompt India to reflect on why it is increasingly welcoming China to South Asian countries, a China expert said.

Oli's upcoming visit to China will focus on the implementation of agreements and agreements reached in the past, the Prime Minister's party CPN-UML has said. Preparations are being made for a visit to China.

Oli's planned visit to China has attracted India's attention, as Indian media including "The Hindu" have said that this visit will make Oli "the first Nepali leader not to visit India on his first bilateral foreign visit after assuming office".

"The Hindu" quoted experts as saying that Oli's visit has signaled tension in Nepal-India relations on several issues, including India's objections to Chinese investment or components in Nepal-India projects, as well as Nepal's pending request for more routes for overflights.

India's excessive attention to the option of a state visit by the independent nation of Nepal not only reflects India's disregard for Nepal's sovereignty, but also reflects India's Monroe Doctrine mentality of treating South Asian countries like its backyard, said Qian Feng, director of the research department.

Tsinghua University's National Strategy Institute told the Global Times. PM’s visit to China does not indicate a change in Nepal's relationship with India. Cooperation with China and cooperation with India are not mutually exclusive for Nepal. "The fact that I am going to China for the first time does not mean that the relationship with India is not good," Oli said.

In this context, Prime Minister KP Sharma Oli has said that his upcoming visit to China will not affect Nepal's relationship with India. Speaking at the closing session of the "Kantipur Conclave" held in Kathmandu recently, the Prime Minister, who will visit China in the first week of December, said that his visit is not the reason for the deterioration of relations with India. "We are a sovereign nation and we have never said that we will not visit India", the Prime Minister said, "We choose to go wherever it is convenient."

It is to be remembered that traditionally, Nepali Prime Ministers visit India for the first time after taking office. However, after not receiving India's invitation for a few weeks, the Prime Minister went to New York to participate in the 79th United Nations General Assembly where he met with various people from the world including Indian Prime Minister Narendra Modi, Chinese Foreign Minister Wang Yi. “The association is [headquartered] in the US, where I met many world leaders, but that doesn't mean I want to visit the US first," Oli added.

"We are surrounded by two great neighbors and we should have good relations with them." “And my visit to China will not spoil our relations with India. Our relationship with India is deep, historical, rooted in culture and tradition and predates the creation of modern states. "We are a sovereign nation and we visit foreign countries as per our convenience," said Oli. Prime Minister K.P.

The ruling Nepal Communist Party (Unified Marxist-Leninist) has confirmed Sharma Oli's visit to China in Kathmandu, becoming the first Nepali leader not to visit India on his first bilateral foreign visit after assuming office. After taking the oath of Prime Minister for the fourth time, Oli met with Prime Minister Narendra Modi on the sidelines of the United Nations conference, while Nepal's Foreign Minister Arzu Rana Deuba reached New Delhi to hold talks with the Foreign Minister.

A further concern for New Delhi is that Mr. Oli is the second leader after Maldivian President Mohammad Muijju to not make India the destination of his first foreign visit after taking oath. Mr. Muizzu visited Turkey, UAE and China before visiting India this year. In contrast, former Bangladesh Prime Minister Sheikh Hasina waited six months after her re-election in 2024, visiting Beijing only before she went to New Delhi for a state visit.

Amid growing BRI pressure from China, Oli has looked at relations with New Delhi. Just to recapitulate, during the visit of China and Chinese President Xi Jinping to Nepal in 2019, Nepal announced to join the "Belt and Road Initiative".

Related Analysts say that on the top of Oli's agenda, there will be a discussion about the situation of about 220 million dollars loan given by China for the construction of Pokhara International Airport and Nepal's formal request for China to waive the loan. And Nepal wants it to be converted into a subsidy or grant for Nepal. The Pokhara airport, which was built by 2023 with a small loan of about 50 million dollars from the Asian Development Bank, and another airport have not been able to host regular international flights.

Also, Nepal should raise the level of dialogue, raise its voice with India to accept the very legitimate demand made by the neighboring countries to use our airport. It is unofficially "slow" to make and buy hydropower from it. Projects built or constructed with Chinese investment, which have raised issues In 2023, China's foreign trade with Nepal increased by 15.6 percent annually to reach 12.69 billion yuan ($1.78 billion). Among them, the value of trade between China's Xizang Autonomous Region and Nepal has reached 2.77 billion yuan, which is one-fifth of the total. Tour agenda China has given a formal invitation to Prime Minister KP Sharma Oli for an official visit in December.

According to officials, the Prime Minister will meet with Chinese President Xi and Oli's counterpart Li, along with senior leaders of the Chinese Communist Party. According to various officials, the main agenda of the visit is to sign the implementation plan of the Belt and Road Initiative, and to implement some new projects under the BRI framework.

The implementation of past treaties and agreements between the two countries can also be salted by building a mega infrastructure project at a fast pace. There is pressure on the Prime Minister to raise various issues during his upcoming visit to China.

In Beijing, the Prime Minister's team is set to discuss past and present progress on connectivity from tunnels to economic highways with Chinese President Xi Jinping. At the same time, it is expected that the progress of the proposal made by Nepal for the construction of Karnali Corridor connecting Hilsa-Simikot and Koshi Corridor connecting Khandbari Kimathanka has become the topic of interest. The presented project has been taken as an economic corridor by the Government of Nepal.

BRI is more necessary for a country like Nepal. We are talking about connectivity, only physical connectivity, connectivity of ideas, connectivity of business, connectivity between people, financial connectivity and all dimensions of connectivity, it can be expected that Nepal's participation in this very important initiative taken by President Xi will contribute to the economic and infrastructure development of the country.

As Chinese President Xi said during his visit to Nepal a few years ago, China expects the development of the Trans-Himalayan Multi-Dimensional Connectivity Network to transform Nepal from a 'landlocked' country to a 'land link' country. Meanwhile, seven bilateral agreements were signed, including the protocol to implement the Nepal China Transit Transport Agreement.

The protocol to pave the way for the implementation of TTA has a provision for Nepal to use Shenzhen, Lianyungang, Zhanjiang and Tianjin ports. It was expected that Nepal's sole dependence on Indian ports for foreign trade would end. It is recalled that Nepal has been allowed to use Lanzho, Lhasa and Zhigatse land ports and according to this protocol, Nepali businessmen will be allowed to access the port by any transport (rail or road) for third country trade.

Nepal has been regularly participating in various trade fairs and exhibitions held in China. However, although China is Nepal's major trading partner, Nepal has a huge trade deficit with China. Therefore, to reduce this gap, it is necessary to increase the export of Nepali products to China. Mutual recognition management, removal of non-tariff barriers, entry-exit inspection and simplified quarantine rules and regulations at entry points including mainland China, customs procedures, simplification, etc. can be effective tools to reduce fragmentation.

Last year, Nepal successfully completed the Nepal Investment Summit, where 15 Chinese projects were signed for implementation.

Nepal is a land of immense potential and potential for investment in hydropower, agriculture, tourism, services, construction industries, etc. China has become the largest source of FDI in Nepal. Nepal also has a favorable financial environment. Nepal has low tax rates, there is no income tax on the income of industries exporting products established in special economic zones for a certain period.

There are tax exemptions and tax concessions for some industries, import duties are exempted for major items used in exports.

In the past, China's credit for building Prithvi Highway was not seen on the ring road, nor on the road to Butwal and Pokhara. Should the government of Nepal and China be serious about winning the hearts of the people?

It is to be remembered that Nepal has not signed an electricity trade agreement with China and the infrastructure has not been built either. Electricity trade has been discussed for a long time but has not been implemented. The construction of Ratmate-Kerung 400 KV transmission line is limited in discussion. Because there is no bilateral agreement between Nepal and China, the project that has been completed has not been able to go into construction. Feasibility study of Ratmate-Kerung transmission line has been done.

Climate Change and Sustainability:

Discussions on climate resilience and sustainable practices align with Nepal's priorities. In terms of geopolitical tensions, regional tensions can affect the environment of countries in the Yes region. The two main ruling partners Congress and UML have given the responsibility of coordinating the visit to Foreign Minister Arzu Rana Deuba.

The two parties recently formed an eight-member political mechanism with four members from each party to assist in the government's operations. A recent decision is to give Rana the responsibility of leading the preparations for the Prime Minister's visit to China.

Officials have indicated that the prime minister plans to give a firm nod to the BRI implementation plan, which has been under consideration since early 2020. The representatives of Nepal and China discussed several times for signing the implementation plan, but it could not be implemented. During Oli's visit, the Nepali side may seek China's support for one (yet to be selected) major project under BRI. The UML meeting emphasized that Nepal should have balanced and harmonious relations with both India and China.

For this, mutual respect, tolerance and perseverance of both countries is necessary. Let us quote only what the famous South Asian Mahatma Gandhi said. "Happiness is when there is unity in what you think, what you say and what you do.

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