Sino-Nepal relations have been strengthened by Nepali Prime Minister Sushil Koirala’s recent visit to China for the second China-South Asia Exposition at Kunming held on June 6-10. He was the ‘guest of Honour’, and Nepal ‘the country of honour’ at the expo. In the event, attended by 46 countries, putting the spotlight on Nepal this year hardly seems a coincidence; Nepal is set to host the 18th SAARC Summit in November. China has shown interest in gaining a more meaningful role in SAARC; it has been active in lobbying SAARC countries to help it gain a special working status – if not a full membership in the eight-nation South Asian regional grouping, a move India is suspicious about.
During his visit, Koirala formally invited China to send its representative for the upcoming SAARC summit. China, on its part, expressed its willingness to help Nepal host the Summit.
Nepal has been critical to China’s growing clout in the region. In February, a delegation of Nepali parliamentarians met, Liu Zhenmin, Chinese vice minister of foreign affairs, in Hong Kong. Mr. Zhenmin later commented that Nepal´s role as the host of the upcoming SAARC summit will be instrumental in augmenting China’s ties with the SAARC.
China currently has an observer status at the SAARC, but seeks a more significant engagement with the grouping. Other countries with observer status in SAARC are Australia, the US, the European Union, Iran, Japan, South Korea, Mauritius and Myanmar. Beijing wants to distinguish itself from these countries and emphasize the great potential for economic and social benefits for people of China and South Asia. Observer states can collaborate with full members of SAARC on specific initiatives, but do not have voting rights.
However, India has been wary of China’s growing presence in the region. In March this year, at a meeting of foreign ministers of SAARC member states, India’s former external affairs minister Salman Khurshid was quite candid. “SAARC needs to clarify its thinking on the nature and the direction of its relationships with partner states who have observer status,” he said.
Nepal has been keen on pushing for China’s full membership into SAARC. At the 13th SAARC Summit held in Dhaka, Nepal strongly supported China’s entrance in the South Asian regional body with an ‘observer status’.
China has promised much to Nepal. During the recent visit, China has emphasised the need for greater regional connectivity, and to do so it pledged rail networks to the Nepal border. They have also agreed to increase the number of flights between the two nations from 14 per week to 56. India has responded to China’s pledge with promises of its own. In 2009 India announced assistance worth Rs. 10.88 billion for the expansion of railway services along the India–Nepal border. Prime Minister Modi, too, was positive about a constructive relationship, and has asked Nepal for a working plan to form an effective partnership.
India versus
While it is very tempting to view Nepal as a site for power games between China and India, such a view is limiting. Nepal has acknowledged the importance of both its neighbours for its own developmental aspirations. Kathmandu has been vocal about a genuine need for partnership between China and South Asia. The opportunities for Nepal in building such a partnership between South Asia and China are tremendous. It does not want to miss out.
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