Nepal’s Prime Minister KPS Oli has prioritised his China visit in a departure from the precedent of making India his first port of call. While this is in keeping with the perception of the Communist Party of Nepal-Unified Marxist Leninist (CPN-UML) leader being overly pro-China, the country’s reliance on India is far greater than that on China, according to the AFP Nov 29.
Oli, who returned to power for the third time in July, departs for a four-day trip on Dec 2 and is expected to meet Chinese President Xi Jinping and hold talks with Premier Li Qiang.
He previously trod a fine balance between Nepal’s two powerful neighbours but favoured Beijing in a bid to decrease his country’s historical dependence on New Delhi.
“This visit will be focused on implementing earlier agreements that have slowed because of the pandemic and political changes in Nepal,” Pradeep Gyawali, the deputy secretary of CPN-UML, has said.
AFP cited Nepali media as saying Oli likely chose Beijing as his first destination due to the absence of a formal invitation from New Delhi.
While both India and China wield sway in Nepal, the former holds a larger share of trade and influence, the report noted.
Last fiscal year, India accounted for nearly 65% of Nepal’s total trade, the report said, citing customs data. China’s trade share was about 15% by contrast, though Chinese companies lead in some industries including a 70% share of Nepal’s electric vehicle market.
But India also has the highest foreign investment in Nepal, pumping in more than US$750 million last year, with China investing more than US$250 million, the report said, citing Nepal’s central bank.
“Both our neighbours should respect the fact that Nepal does harbour small-state anxieties as a nation sandwiched between two world powers,” Akhilesh Upadhyay of Kathmandu-based think tank Institute for Integrated Development Studies (IIDS), has said.
“But our choices should be guided by our national interest. We should not feel caught up in the great-power rivalry.”
“National interest” has also been cited by Oli and his supporters when questioned on the choice of China for his first visit. But this did not stop Oli’s predecessor Pushpa Kamal Dahal, alias Prachanda, from saying the current Prime Minister was “playing the China card” in relation to his planned trip, as noted by the kathmandupost.com Nov 16.