PM Oli carrying high aspirations of the Nepali populace to China (Commentary)

Deepraj Sanyal / Kathmandu: When Prime Minister KP Oli embarks on his first official visit to China on Sunday, he will not only be taking along with him the goodwill and deep faith of the government but also the collective hope and aspirations of the Nepali population to the northern neighbour.

The visit, taking place at the invitation of the Chinese Premier Li Keqiang, is expected to add a new dimension to the age-old Nepal-China friendship and cooperation. Although this is a regular visit at the governmental level, it is supposed to be significant especially in terms of opening a new door for enhanced trade and commerce, and expanded cooperation.

As this visit is taking place in the backdrop of Nepal’s adoption of a new constitution, effectively establishing the country as a federal democratic republic, and as the country prepares to rebuild itself after the devastating earthquake of April 25, 2015, it is expected to be notable. The Prime Minister will have the opportunity to discuss with the Chinese leaders in detail about Nepal’s new constitution and the post-earthquake reconstruction campaign and to garner China’s support in these fronts.

Nepal’s northern neighbor has always been generous in supporting it whenever the occasion arises. The helping hand it extended in the aftermath of the earthquake in terms of the different support in the rescue and relief as well as in rehabilitation efforts are worth cherishing. China also committed a huge financial support during the International Conference on Nepal’s Reconstruction held in June last year. During the present visit PM Oli will have the opportunity to convince the Chinese leaders about China’s indispensable technical and financial support for the post-disaster reconstruction as well as the need of scaling up trade and transit.

China has been Nepal’s dependable friend and partner ever since the establishment of diplomatic relations between the two countries on August 1, 1955. It has been relentlessly supporting Nepal in its socio-economic development endeavours in the true spirit of the panchasheel or the five principles of peaceful co-existence, whatever the political system Nepal might be under. In those six decades of diplomatic relations, China has always respected Nepal’s sovereignty, independence and nationality and continued to extend cooperation no matter which party is in power and the kind of political system in place.

The Nepal-China Treaty of Peace and Friendship of 1960 and the Nepal-China Border Treaty, 1961, among other agreements and understandings, have helped augment and propel the friendship between the two neighbours. Nepal too has also been making its best efforts in maintaining this cordiality in relations with its northern neighbor and as such there are no any serious issues in relations between them. The only way ahead is to deepen this bond of friendship further in the days ahead. From the start, Nepal has been infallibly supporting the ‘one China’ policy. It has also taken China’s security concerns seriously and doing utmost from its side to live up to it.

Prime Minister Oli’s visit to China is taking place exactly a month after he visited the Nepal’s another important neighbor, India. The visit to India took place when Nepal was hard hit by the undeclared border blockade imposed by the same country. The restriction of imports and export and the supply of goods and fuel from the transit points at the southern border dealt a debilitating blow to Nepal’s economy and caused a great deal of hardship to the common people. The southern neighbour’s attitude woke up the Nepali citizens. They cultivated the idea that depending on only one country for its entire supplies is suicidal. The people started voicing that the government should import fuel from China and open up more transit points with China. Although there is no blockade at the southern border and the supplies are smooth now, there is strong public voice that the government should not be complacent on this but seek to open up additional transit points with China. This voice also makes the PM’s visit to China more significant. While in China, PM Oli will be surely talking on this matter.

China is the second largest economy of the world and is on the way towards surpassing the largest economy of the USA. Moreover, China, through its ‘One Province –One Road’ policy is trying to expand its market and connectivity. In this connection, China has the policy of developing the Tibet Autonomous Region of China as the major trade hub of South Asia. If, in this context, Nepal brings a proposal for developing a Nepal-India-China Economic Corridor, China should accept it. However, India’s consent is also required for this. Therefore, Nepal should be able to take both India and China into confidence on this. China also plans to develop Tibet as an important gateway to South Asia.

In this connection China is building up the physical infrastructures including construction of roads and railway lines. The government of the TAR has put expansion of transportation network high on its policy priority. The planned construction of an international electricity network and expansion of the railway line from Lhasa up to Kerung via Sigatse within 2020 are just a case in point. In this connection, Nepal should propose the expansion of the railway from there to Kathmandu and then to Lumbini.

Another area that China has taken initiatives is in free trade agreement. So far, it has signed free trade agreements with 14 countries. The FTAs help the developing countries as China buys goods from these countries by giving customs duty rebate. Nepal can hugely benefit from this.

As per the agenda of the visit, at least six Memoranda of Understanding are likely to be signed with China during Prime Minister’s visit. These MoUs pertain to trade, transit and investment. During the visit, Nepal will also seek Chinese assistance in various infrastructure-related projects. Among the key ones include MoUs on transit and transportation, importation of fuel, bilateral trademark registration and protection, free trade and opening a branch of Chinese bank here and Nepal’s new Consulate General Office in Chengdu, Sichuan Province of China.

Nepal is looking forward to signing Transit and Transportation Agreement with China to use its sea port and government-to-government and business-to-business agreements to pave the way for private players to import fuel from the northern neighbor. It is also planning to seek Chinese assistance for the construction of at least three petroleum depots in Paanchkhal of Kavre, Battar of Nuwakot and Khaireni of Tanahun.

Other agendas include seeking Chinese grant assistance and soft loans for developing reservoir-type Budhigandaki (1,200 MW), Kimathanka-Arun (400 MW) and Sunkosi Third (585) hydropower projects. Similarly, expediting loan agreement for the construction of a regional airport in Pokhara, opening up more trade routes, establishing one Nepali Cultural Centre in Beijing, upgradation and expansion of the Kodari highway and Kathmandu- Kerung highway feasibility study of Kathmandu-Pokhara rail service and studying the feasibility of mono-rail in Kathmandu are also high on the PM’s agenda. So, in the light of the completion of six decades of Nepal-China diplomatic relations, expectations are high from PM Oli’s this visit. RSS