Key Issues Nepal’s Foreign Minister Khanal Should Address in Beijing During His Visit to China
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Nepal’s Foreign Minister Shisir Khanal embarks on his first official visit to China on Sunday, with experts highlighting challenges in implementing and leveraging existing agreements to build a trustworthy partnership.
Analysts note particular attention will be on how Nepal raises China’s role concerning the ongoing border dispute with India.
The Foreign Ministry has announced that Khanal’s four-day visit begins on May 14 (Jestha 31 in Nepali calendar), including scheduled talks with Chinese counterpart Wang Yi in Beijing.
This trip follows just one week after Khanal’s visit to India.
A Chinese expert on Nepal expects the visit will focus on agreeing to implement prior cooperation agreements.
“China has optimistic expectations now that a nationalist administration is in place, creating a more reliable environment,” noted Gao Liang, deputy director at Sichuan University’s Nepal Studies Center.
BRI Infrastructure Projects
Former Chinese Ambassador Vishnu Pukar Shrestha emphasized the need for continuity under the Belt and Road Initiative (BRI) framework, which both countries have signed.
“Failing to honor previous agreements risks chilling relations. China and Nepal must collaborate under the BRI framework,” he said.
“China is also expected to provide grants for certain projects.”
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BRI projects include the Tokha–Chhahare tunnel, Hilsa–Simikot road, among others.
However, disagreement among previous government factions over loans versus grants has stalled these projects.
“Some priority projects must move forward, and some like the Rasuwa-Gadhi road need urgent completion,” said former Ambassador Shrestha.
Addressing China’s ‘Doubts’
Another former ambassador, Mahendra Bahadur Pandey, pointed to the government’s commitment to prevent misuse of Nepalese land against China but noted some groups’ activism has weakened official efforts.
“Doubts must be transformed into trust,” Pandey emphasized.
Pandey referred to protesters during the Janajati movement who wore T-shirts labeled ‘TOB’.
The Chinese side has also raised concerns about the poor implementation of agreements between the two countries.
Though a memorandum of understanding for the BRI was signed in 2017, a decade of delays in implementation has posed challenges.
Photo credit, Nepali Embassy China
During KP Sharma Oli’s term, nine Memorandums of Understanding (MoUs) were signed with China.
Pandey, who also served as Foreign Minister, calls for “serious and transparent” discussions on loans and grants.
He expressed concerns that Minister Khanal has not consulted with predecessors, which could disrupt ongoing projects.
Border Issue Requires Careful Attention
Following China’s decision to allow Indian pilgrims to Kailash Mansarovar to use the Lipulekh pass, tensions over border disputes with India have escalated.
Nepal had sent diplomatic notes to New Delhi and Beijing expressing concerns over this decision.
Former Ambassador Shrestha remarked, “It appears there was no consultation with India on this border matter, but raising the issue of sovereignty is crucial. A re-examination of territorial encroachment should be demanded.”
Mahendra Bahadur Pandey emphasized Nepal’s clear endorsement of the Kalapani area.
“This must be stated explicitly, not only through media but through bilateral government channels.”
Discussions on Investment Models
Former Ambassador Pandey underlined the need for transparent and serious discussions on loans and grants.
“Nepal must avoid falling into debt traps. It can obtain concessional loans in a trustworthy environment,” he added.
Former Ambassador Vishnu Pukar Shrestha stressed the importance of geopolitical balance.
“The interests of neighbors require hard work, but our national interest must take precedence,” he remarked.
Shrestha identified the BRI as a joint endeavor, necessitating groundwork due to involvement in road networks and transmission lines.
Tourism, Technology Transfer, and Other Topics
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Pandey highlighted the necessity of infrastructure development to attract Chinese tourists to Nepal.
“Infrastructure must be ensured to facilitate tourism,” he said.
While Nepal aims to mark 2025 as the Chinese Tourism Year, regular flights by Chinese airlines to Pokhara Airport have yet to materialize.
Pandey also pointed out China’s capabilities in science and technology, suggesting potential for technology transfer and student exchange programs.
“The Chinese are leaders in AI; their knowledge and cooperation are needed,” he stated.
He further recommended enhancing collaboration in agricultural and medicinal herb processing sectors.
Economic and Trade Issues to Lead the Agenda: Chinese Expert
Gao Liang, deputy director of the Nepal Studies Center at Sichuan University, outlined China’s interest in Nepal’s economic development and the election promises of the Rastriya Swatantra Party (RSP).
“Economic and trade cooperation should be the main focus of the visit, especially concerning investment and staff exchanges,” he said.
“As this is the first high-level visit, it holds significant importance. China is eager to strengthen bilateral relations.”
Photo credit, Courtesy of Gao Liang
There are ongoing discussions about the railway project, including track length and related details, though progress has been slow due to procedural issues.
Chinese technicians have informed that the final feasibility study report is being prepared.
During Chinese President Xi Jinping’s 2019 visit to Nepal, both sides agreed to develop a comprehensive report on the Kathmandu-Kerung railway.
Preliminary studies propose a 72-kilometer railway line within Nepal.
China maintains it will not take a firm stance on Nepal-India geopolitical disputes and believes resolution will come through bilateral dialogue.
“China hopes for friendly dialogue and consultations from both parties,” the expert stated.
