Nepali scholar Upendra Gautam examines the historical and geopolitical interactions between China and Nepal, highlighting the role of the Belt and Road Initiative (BRI) in shaping economic and strategic relations. Analyzing past opportunities and challenges in bilateral cooperation through Nepal’s geographical and social structure, Gautam draws attention to fluctuations in diplomatic relations.
New Cooperation Under the Belt and Road Framework
In December 2024, Nepal and China signed the Belt and Road cooperation framework, marking a new phase in their modern relations. China’s 2015 BRI vision outlined enhanced cross-border trade, tourism, and cultural exchange with Nepal. Expanding economic cooperation with Nepal, China aims to achieve shared development goals.
In recent years, China’s Tibet Autonomous Region has been positioned as a strategic frontier for cross-border cooperation with Nepal. Additionally, under the BRI, China prioritizes regional development, investment, and green technology innovation to maximize its economic advantages.
The Nepalese government hesitated for years before signing the BRI agreement. However, cross-border transportation and energy projects hold the potential to strengthen Nepal’s economic and trade independence. Successfully implementing these projects could accelerate Nepal’s integration into the global economy.
Implementation of Strategic Projects and Future Outlook
During former Nepali Prime Minister KP Oli’s visit to China, the necessity of swiftly implementing BRI projects was emphasized. In September 2024, Chinese Vice Premier Ding Xuexiang and Nepali Deputy Prime Minister Bishnu Paudel met to accelerate cooperation, marking a significant step forward.
Gautam argues that Nepal should maintain an independent and neutral foreign policy while actively collaborating with China on strategic projects. Considering geopolitical balances, Nepal must focus on long-term development goals to ensure sustainable economic progress.