What will PM Oli’s visit to China bring to Nepal?
PM KP Oli left to China for six days upon the invitation of his Chinese counterpart Li Keqiang. Nepal-China relationship was formalized back in 1st August, 1955. Given the geographical structure, Nepal’s development is correlated with its relationship between two major neighboring countries India and China. After Indian Prime Minister; Narendra Modi’s recent visit to Nepal, KP Oli has further extended ties with China.
Whether or not the nation’s currently ruling government is a choice of all general public, it has at least been proven to be one of the ideal governments to smoothen the ties between Nepal and China. Although general public criticized Modi’s visit to Nepal pointing out the unofficial blockade of India but this particular visit has been supported by majority of public. The motive behind KP Oli’s visit is primarily based on the development need and requirements of Nepal. The major agendas that have been set are referred to infrastructural development, trade activities and mutual friendship between the two countries. Some of these agendas are:
Advancement of bridges in Tatopani and Rasuwagadhi
Private sectorial agreement of the two countries for the development of Marsyangdi power plant and promotion of pashmina and agricultural products
Railway and roadway facilitation which includes study of Kerung-Kathmandu Railway, establishment of eight trading points with Nepal and utilization of Tibetan highways for logistic purpose
Border check points construction at Bajhang, Rasuwagadhi, Darchula, Taplejung and Humla facilitating trade activities
Formulation, evaluation and implementation of joint mechanism for easing of Chinese funded projects in Nepal
Discussion on One Belt One Road Initiative that involves corridors in North-South, free trade zones, exhibition centers, check posts, roadways and railways construction
The established agendas are directly related to the attainment of economic growth rate of 8% proposed by finance minister Dr. Yuvraj Khatiwada. The set agendas will further enhance trade activities of Nepal and reduce the trade deficit of Nepal with China. The locals in the North borderline of the country will be further benefitted with established bridges and other infrastructures.
Nepal has a very few national companies in the manufacturing sectors. The implication of these agendas will motivate the local companies to trade their goods and services to China. The railway construction between China and Nepal will boost entrepreneurial activity, local employment, tourism and our products and services will find a space in international market.
PM KP Oli has focused towards development of the science and technology in his tenure so; the visit can further utilize the ties between the countries to enhance technological aspect of Nepal. China’s innovation, research and technological up gradation over the years has come out as a threat to many Western tech companies. Therefore, Oli’s visit is expected to facilitate the development of energy, agricultural, hydropower, internet and software of Nepal through the knowledge transfer of cutting edge Chinese technologies.
The Chinese funded projects are often limited within the formation of draft papers so, a joint mechanism system will evaluate the implementation of these projects. These funded projects will benefit the economic growth and development of the country. Besides, the destruction caused by 2015 earthquake can also be restored with these funded projects.
The Silk Road (One Belt One Road) initiative undertaken by Chinese leader Xi Jingping that aspires to connect Central Asia, West Asia, Middle East and Europe can further establish the international brand names of Nepalese products. With this initiative, Nepal no longer has to depend on only two countries for its export and import activities. Thus, Nepal will take this visit as an opportunity to move along with China’s Belt and Road initiative.
Nepal imported goods worth Rs 88.45 billion and exported goods worth Rs 1.77 billion to its Northern neighbor during the seven months period from mid-July to mid-February in FY 2017-18. The commercial growth rate of Nepal with China has exceeded that with India. Chinese tourists are ranked in the second position in terms of volume of tourist arrival in Nepal. The increasing commercial, trade and tourism activities have shown an infrastructural gap in cross border areas. Therefore, the improvement in connectivity and cross boarder infrastructural development will benefit the trade growth, business growth and the growth of Nepalese economy.
Oli’s team’s visits to China have brought hopes, aspirations and expectations among the general public, businessperson and Northern traders most importantly. The policies might be laid down, the projects might be implemented yet the same question rises. Are local Nepalese ready to overcome the cultural barriers with China? Are Nepalese businesspersons willing to shift their products export towards the Northern side? Will Nepal use the visit as a medium to sustain independently or will we remain a parasitic economy depending on its neighboring countries once again? Hopes have been high yet the initiation of this mutual relationship begins within us.
