Following the recent change in government in Nepal, the Indian and Chinese ambassadors separately met with Nepal's Finance Minister Rameshwor Khanal to discuss continued cooperation and investment. The meetings, which took place at Singha Durbar, occurred after Prime Minister Sushila Karki assumed office, following the ouster of the K P Sharma Oli government.
Indian Ambassador Naveen Srivastava conveyed India's commitment to Nepal, pledging ongoing cooperation. Srivastava stated India's readiness to expedite the implementation of projects currently underway in Nepal with Indian assistance. He also expressed India's willingness to cooperate in boosting the morale of Indian private sector investors involved in the Himalayan country. Discussions also included strengthening coordination for trade facilitation between Nepal and India. Finance Minister Khanal expressed gratitude for India's continuous support.
Chinese Ambassador Chen Song assured that China respects the choices of the Nepalese people and will continue its assistance to Nepal. Chen Song noted the satisfactory progress of various projects being undertaken in Nepal with Chinese assistance. The Chinese envoy also indicated that Chinese investors are interested in increasing investments in Nepal. Earlier in the meeting, Finance Minister Khanal requested the Chinese envoy to open a branch of the Bank of China in Nepal to simplify payment procedures for Nepalese exports to China and encourage Chinese investment.
The meetings highlight the ongoing interest of both India and China in Nepal's economic stability and development. Both countries are key players in Nepal's economic landscape, with significant trade and investment ties. Nepal has historically maintained a non-aligned approach, seeking to balance its relationships with both India and China.
Nepal's relationship with India is characterized by a long and open border, and deep-rooted socio-cultural connections. India is Nepal's largest trade partner. However, there have been instances of strained relations, including border disputes and trade disruptions.
China's engagement with Nepal has grown significantly in recent decades, particularly in infrastructure development. Nepal has signed agreements with China under the Belt and Road Initiative (BRI), including projects to improve connectivity. Some of these projects have raised concerns in India, which sees China's growing influence in Nepal as a potential threat.
Nepal aims to leverage its relationships with both India and China for economic growth and development. The country seeks to benefit from infrastructure development initiatives and increased trade and investment. Balancing these relationships and ensuring that Nepal's national interests are safeguarded remains a key challenge.
