Nepal’s foreign minister Narayan Khadka visited China and held a meeting with his Chinese counterpart Wang Yi early this week amid apprehensions expressed by several experts that “Beijing is encouraging Kathmandu to live luxuriously with it on loan”. There are reports also, saying that the Nepalese foreign minister has “returned a happy man from China who offered Nepal a huge grant in return for Kathmandu’s assurances to stick to “One China’ policy. Is this an alarm bell for another debt-trap? This question is being raised now as India watched closely the Nepalese foreign minister’s visit to China and his various diplomatic and economic engagements out there. While India has been regularly cautioning all the neighbouring countries including Kathmandu against China’s debt-trap diplomacy, it needs to nudge Nepal more vigorously not to fall prey to this trap, given the reports about Beijing intensifying efforts to expand its influence in the Himalayan region. That Nepal should learn from Sri Lanka’s experience is what External Affairs Minister S Jaishankar has underlined on several occasions. At the Munich Security Conference in February this year, Jaishankar without naming China, criticized Beijing for the debt-trap diplomacy it indulges in and cautioned the countries in the neighbourhood not to fall into the trap. He advised them to make “informed decisions”.
Nepal’s Foreign Minister Pradeep Gyawali with Chinese Foreign Minister Wang Yi as he arrived for a meeting at the Great Hall of the People in Beijing last month.
But what is worrisome is that China is consistently trying to convince Nepal to be mindful only of its own development “which is not possible without financial assistance from Beijing’. The Chinese diplomats over the last few months have reportedly been meeting their Nepalese counterparts with one luring offer or the other. The Chinese foreign minister Wang Yi during his talks with the Nepalese counterpart is learnt to have mounted pressure on Kathmandu to accept Beijing’s investment (read irrevocable debt) proposals. Wang Yi is also understood to have tried hard to carry forward the agenda to increase Chinese influence in Nepal by ensnaring the Himalayan nation in an “endless cycle of debt”.
According to Nepal’s Ministry of Foreign Affairs, Yi and Khadka discussed enhancing, among other things, “bilateral trade, connectivity network, health, tourism, agriculture, education.” Beijing reportedly assured Kathmandu to provide it with a 118 million USD grant for certain projects. This is what the Chinese government led by Xi Jinping used to do for Sri Lanka. What exposes Chinese ulterior motive is that not a single project has, so far, been completed under the Belt and Road Initiative (BRI) for which an MoU had been signed in 2017 when Pushpa Kamal Dahal was the prime minister of Nepal. Why is China not working on the existing projects under the BRI when it is so caring about development in the Himalayan nation? It means that the Chinese government is using the BRI agreements as a weapon only to entrap the smaller and economically weaker countries like Nepal under the garb of infrastructure development, promising cheap loans. This is something that Kathmandu should avoid getting into. Unfortunately, Colombo could not resist the temptation of cheap Chinese loans offered on the pretext of development of infrastructure in the island nation. Many fear that China is trying to implement the same Sri Lankan formula to boost its debt-trap diplomacy in Nepal as well by luring it with Beijing sourced cheap projects.
India needs to drive home the message in Nepal more forcefully that New Delhi’s goodwill comes with no strings attached. Moreover, Kathmandu should be vigilant and should learn from what happened in Colombo and other countries which signed ‘so-called’ agreements with China. Nepal needs to be reminded time and again that China through its infrastructure projects is making inroads in the Himalayan region in a bid to work against New Delhi’s interests only. In fact, China has nothing to do with the development of Nepal as its motive is something else. This is something that the Nepalese government should not close its eyes to. What is relieving is that Nepal under Sher Bahadur Deuba has so far played it safe. Unlike KP Oli who was pro-China, Deuba is moving cautiously in terms of diplomacy with Beijing. After assuming charge last year, he made his first international trip to India this April, with a visit to the holy city of Kashi added to the itinerary. He also promised not to allow use of Nepal’s soil for any anti-India activities, with an obvious reference to the Chinese agenda. However, India needs to maintain a close watch over dynamics of ties between Kathmandu and Beijing. After all, it is money that matters.
