(TibetanReview.net, Dec04’24) –China’s Belt and Road Initiative (BRI) projects in Nepal, first proposed in May 2017, have made little or no headway so far, and President Xi Jinping could do no more than to call for advancing strategic partnership of cooperation with the country during his meeting with visiting Prime Minister KPS Oli on Dec 3. However, the two sides signed nine agreements and memorandums of Understanding (MoU) and also issued a joint statement.
A BRI Cooperation Framework agreement was also signed. But it is not clear what progress, if at all, it represents in terms of implementing China’s 35 BRI projects in Nepal.
In their 12-point joint statement, “the Nepali side reiterated that Xizang affairs are internal affairs of China, and that it will never allow any separatist activities against China on Nepal’s soil,” referring to Tibet by the Sinicized term preferred by China and to Tibetan activities in Nepal disapproved of by Beijing.
On the still stalled BRI projects, the two sides had little concrete to say in the joint statement other than to “agreed to strengthen the synergy of their development strategies, and pursue deeper and even more concrete high-quality Belt and Road cooperation.”
At the heart of the failure to sign the agreements on the BRI projects is the difference between the two sides on the mode of funding them. Nepal insists, citing its dire economic situation, that China should provide the funds as grants, which entail nominal interest rates. China insists the projects be funded with BRI loans, which entail high interest rates.
While this difference continued to remain, the joint statement said: “The two sides agreed to strengthen the synergy of their development strategies, and pursue deeper and even more concrete high-quality Belt and Road cooperation. The two sides expressed their readiness to sign the MoU on building the Trans-Himalayan Multi-Dimensional Connectivity Network and the Framework for Belt and Road Cooperation between the two Governments as soon as possible. Both sides expressed their commitment to strengthening connectivity between the two countries in such areas as ports, roads, railways, aviation, power grids and telecommunication, to help Nepal transform from a land-locked country to a land-linked country.”
This part of the joint statement obviously referred to Nepal’s – especially Prime Minister Oli’s – anxiety to reduce reliance on India.
The BRI Cooperation Framework was signed on Dec 4. The signing was delayed on Dec 3 due to disagreements over terminology to be used in the draft. The debate centred on whether to include the term “grant” in the financial cooperation modality, which was rejected by the Chinese side. Following further discussions, a consensus was reached on Dec 4, with both sides agreeing to use the term “aid assistance financing,” said the Kathmandupost.com Dec 4. It is not clear what this term means, which is neither “grant” nor “loan”.
Earlier, in their meeting, Xi was stated to have pledged efforts to advance China’s strategic partnership of cooperation with Nepal. Expressing appreciation for Oli’s firm commitment to promoting friendship between the two sides over a long period of time, Xi expressed China’s willingness to deepen pragmatic cooperation with Nepal, advance high-quality Belt and Road cooperation, and strengthen cooperation in such fields as ports, transportation, power grids and communication, reported China’s official Xinhua news agency Dec 3.
On his part Oli has maintained that “both Xizang and Taiwan are inalienable parts of China’s territory.” He has stressed that “Nepal firmly adheres to the one-China principle,” and “will not allow any force to use its territory for anti-China activities or to harm China’s interests,” and that “Nepal opposes any foreign interference in China’s internal affairs.”
Apart from President Xi, Oli, who is on a four-day official visit to China, held talks with Prime Minister Li Qiang, and Chairman of the Standing Committee of the National People’s Congress Zhao Leji on Dec 3.
Oli invited President Xi as well as Premier Li to visit Nepal. Both assured that they would visit at an appropriate time, said another Kathmandupost.com report Dec 4.
Nine agreements and MoUs signed between the two sides will be developed under the framework of BRI cooperation, the report cited a delegation member as saying.