Different issues related to their bilateral interests were discussed by China and Nepal, including the strengthening of military cooperation between the two countries, issues relating to the resumption of training and student exchange programmes and the follow-up of security assistance initiatives affected by the Covid-19 pandemic.

 

In 1955, Nepal developed ties with China. It accepted Tibet as a part of China in 1956 and signed the Peace and Friendship Treaty in 1960. Nepal was suggested as a "zone of peace" between India and China in the 1970s by the King of Nepal, Birendra. No strong interest was shown by India, but China expressed support.

The relationship between India and Nepal took a turn for the better in 2015, when India placed an informal but successful blockade on Nepal, resulting in a significant shortage of fuel and medicine in Nepal.

China reopened its border with Nepal in Tibet as tensions with India increased. Nepal reaffirmed its commitment to the `Single China Strategy` following the Chinese President`s recent visit, pledging not to allow any troops to use its territory against China.

 

Although there are open borders between Nepal and India, people can move freely across the border; as Nepal`s largest trading partner, China is gradually trying to replace India. In South Asian countries, India is the largest economy and has been the king of South Asian nations. China needs India`s rising power & status to be contained, which could challenge China`s dream of being a superpower.

 

Therefore the main strategic priorities of Beijing`s Nepal strategy have been the preservation of a balance of power in favour of South Asia and ensuring Nepal`s active cooperation to prevent its rivals from using the country for anti-China activities. The northern border between China and Nepal is situated entirely in Tibet. China believes that security cooperation with Nepal is important for Tibetan affairs to be managed.

 

China is for Nepal, a possible source of products and funding for its economic recovery. Almost half of the population of Nepal is unemployed and more than half are illiterate. More than 30 percent of Nepal`s population lives in poverty at the same time. Nepal needs to contact China to resolve its poverty and unemployment issues in order to solve its internal problems. In the talks, Nepal and China will make progress and run counter to India`s "Big Brother" strategy. Through the China-Nepal Economic Corridor, Nepal seeks to end India’s dominance on its trade routes by strengthening ties with China.

 

Given the difference in strategic weight between China and Nepal, China may use security diplomacy as a tool for interfering with Nepal`s internal affairs. Since Nepal is the buffer country of India, seeing Nepal enter the sphere of influence of China would not serve the strategic interests of India. Furthermore the role of China in "Security Diplomacy" is not limited to Nepal. China has strong financial resources and the growth of China`s presence in India is difficult for India to manage neighbourhoods. The China-Nepal Economic Corridor may cause China to dump consumer goods through Nepal, which will further deteriorate the trade balance between India and China.