Nepal stated that it was not in a position to take loans for projects under China’s Belt and Road Initiative (BRI) and would instead primarily rely on grants, progressing based on mutual consensus among all stakeholders. Foreign Minister Arzu Rana Deuba clarified Nepal’s position on implementing BRI projects during a briefing at Tribhuvan International Airport following her three-day visit to China. Her trip was intended to prepare for Prime Minister K P Sharma Oli’s forthcoming official visit to China, beginning on 2nd December.
Deuba mentioned that Nepal had signed the BRI framework agreement in 2017, but discussions about its implementation modality were still underway. She added that any projects under the initiative would only proceed through agreements and mutual understanding involving Nepal, China, and relevant stakeholders within Nepal.
In response to a question, the minister indicated that Nepal was currently unable to take loans under the multi-billion-dollar infrastructure initiative and had conveyed this clearly to the Chinese side during their discussions.
The BRI, a flagship initiative of Chinese President Xi Jinping, seeks to expand China’s global influence through investments in infrastructure projects. Deuba emphasised that Nepal’s ruling coalition partner, the Nepali Congress (NC), had already decided to pursue BRI projects exclusively on a grant basis, a decision that had been communicated to Prime Minister Oli’s CPN-UML party. She reiterated that discussions in China had centred on advancing BRI projects through grants.
It was noted that concerns over the BRI have been raised by several countries, including the US and India, as China has offered large loans to smaller nations for infrastructure projects without considering their repayment capabilities. This issue gained attention after China acquired Sri Lanka’s Hambantota port on a 99-year lease in a debt swap.
Deuba highlighted Nepal’s strong bilateral ties with China, which she said had been further enhanced through high-level exchanges. She described her visit as part of ongoing efforts to deepen relations at all levels.
During the visit, Deuba held bilateral talks with Chinese Foreign Minister Wang Yi in Chengdu, where discussions focused on trade, connectivity, investment, tourism, and people-to-people exchanges, according to a statement from the Nepali Embassy in China. Key connectivity projects, including cross-border railways, the Tokha-Chhahare tunnel, and economic corridor initiatives, were reportedly discussed.
The two sides reaffirmed their mutual support for sovereignty, territorial integrity, and non-interference, with Nepal reiterating its adherence to the 'One China Principle'.
Looking to the future, both countries expressed a commitment to enhancing practical cooperation and preparing for the 70th anniversary of diplomatic relations in 2025. This milestone coincides with 'Visit Nepal Year,' an initiative aimed at attracting Chinese tourists, officials said.
