Wednesday, December 18th, 2024

Oli’s China visit: A step toward Chinese debt and impending issues



China was aware that a significant barrier to concluding the BRI Implementation Agreement had been the Nepali Congress.

The coalition government of Sher Bahadur Deuba and KP Oli may not be in a favorable situation in the future.

China is aware that the Nepali Congress and CPN-UML’s sporadic interests could be shattered at any time.

The UML chairman also believed that it would be best to take the Nepali Congress into confidence and make the China visit as effective as possible after not getting much attention from India.

Keeping the BRI implementation at the center stage, Oli traveled to China for four days, from December 2 to 5, in order to reach a written agreement on the “BRI Cooperation Framework” between the two countries.

The BRI Implementation Agreement was finally signed by Nepal following a heated debate in which there were concerns about whether the country would accept China’s ambitious and strategic idea, which is regarded as a ‘debt trap under the BRI.’

The Chinese side substituted the term “financing modality” for the word “grant” in the Nepali side’s proposed “grant financing cooperation modality” in the BRI Framework draft.

The country’s present economic strategy is unsatisfactory. Nepal’s import-dependent economy is not expected to get any better anytime soon.

Once more, Nepal offered a compromise and suggested “aid financing” instead of grants and help, which was ultimately accepted.

Nepal has stated that it will prioritize grants going forward, even though this covers both grants and concessional loans in mere interpretation.

China, however, wanted the word “grant” not to be incorporated in the agreement document, and that is what happened.

Even after the Prime Minister’s visit, the discussion of whether or not to accept a Chinese loan under the BRI has persisted.

Foreign Minister Arju Deuba Rana reprimanded people who made comments in this respect, stating that no decision has been made regarding whether to grant or accept a loan, and that she is making comments without fully comprehending the terms of the deal.

She claimed that since the act of taking out or offering a loan is dependent on the receiving party’s approval and request, it is childish to claim that a loan agreement was signed.

However, in practice, China will only provide loans through the BRI. For a country like Nepal, which has already been compelled to take loans from various donors to meet its current expenditure, taking a Chinese loan is not a strange matter.

However, it is unclear how “concessional” and “strategic” the loan obtained under the BRI will be. Nepal will undoubtedly commit a grave error if it expects to get grants under the BRI.

No matter how irritated the current foreign minister, Rana, is by the question of Nepal being caught in China’s clutches, she will be established as a tool for use by China and Nepali communist leaders.

Forget the BRI implementation agreement for a moment and make a formal effort to ensure that Nepal receives the grant money announced by China in the past.

For instance, when will Nepal receive the 85 billion that the Chinese President promised five years ago?

Similarly, in an attempt to gauge Nepal’s commitment to China’s “One China Policy,” China has been parroting Nepali authorities.

In a joint statement, Xi Jinping claimed that Taiwan is an inalienable part of China’s territory, that Nepal firmly supports China’s efforts to achieve its national reunification, and that it opposes “Taiwan independence.”

This was the last time it became a “One China principle,” during Prachanda’s visit to China.

This time, he took advantage of KP Oli’s frustrated psychology. Remarkably, Foreign Minister Rana witnessed it on behalf of the Nepali Congress.

The phrase ‘reunification’ of Taiwan is a little deceptive. KP Oli’s devotion to China is such that it appeared he has even disregarded the Panchsheel concept, which forms the cornerstone of Nepal’s diplomatic efforts.

The non-alignment strategy that Nepal has been pursuing up to this point appears to have gone unnoticed by Oli.

However, the Nepali Congress ought to have considered the possible geopolitical pressure it would exert on Nepal, at the very least.

However, even the Foreign Minister, who is viewed as a UML tool, failed to demonstrate sincerity.

In his book Himalpariko Huri, journalist Sudheer Sharma depicts that, in China, the party and the government, party policy and government policy are often mixed up.

But since the Nepali side does not have the technical expertise to sort all that out and make decisions, China sometimes inserts its internal policies or its party’s ideological line into bilateral agreements or joint statements.

This also happens because it does not understand the real meaning of political terms in Chinese.

For example, terms like “Shared Future for Humanity” or “Socialism with Chinese Characteristics” were included in bilateral declarations.

Despite Foreign Minister Rana’s clarifications, the communist parties, which have a great influence on Nepali politics, are clearly excited to take loans from China, as is evident from their statements made prior to Oli’s visit.

Once we make a written commitment to such terms, the Chinese political interpretation keeps coming accordingly, and it is not easy for Nepal to turn back from there.

Likewise, in an interview with Chinese media during his trip to China, KP Oli described Xi Jinping as his role model and an exemplary leader for the entire globe.

He also disclosed his close relationship with Xi and his ideological affiliation with the CPC, highlighting the importance of “Xi Jinpingism” in Nepal.

Oli’s written agreement on Taiwan, while keeping the Nepali Congress on the sidelines, is unacceptable to the democratic parties and citizens of Nepal.

How figures outside of the Nepali Congress’s establishments have addressed these strategic challenges will also be revealed in due time.

Finally, time will tell how the 10 projects supported under the BRI Framework Agreement will progress.

For now, China has succeeded in expanding the BRI strategy in a forward-looking manner as it wishes.

The assistance that Nepal will receive under the BRI will be in the form of loans.

Despite Foreign Minister Rana’s clarifications, the communist parties, which have a great influence on Nepali politics, are clearly excited to take loans from China, as is evident from their statements made prior to Oli’s visit.

The country’s present economic strategy is unsatisfactory. Nepal’s import-dependent economy is not expected to get any better anytime soon.

Interests are given priority in diplomacy, and in Chinese diplomacy, this is even truer.

A negotiator is not interested in making friends for the sake of friendship.

They cultivate connections while keeping an eye out for exploitation. Gaining a psychological edge over the other side is their goal.

Publish Date : 18 December 2024 08:12 AM

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