2025, Vol. 7, Issue 1, Part A

Author(s): Hirendra Bahadur Shahi

Abstract: Since Nepal and China established formal diplomatic relations in 1955, their ties have been characterized by mutual respect and cooperation. China has consistently viewed Nepal as a close and important neighbor, honoring its sovereignty, independence, and territorial integrity, while offering assistance during times of need. In return, Nepal has steadfastly upheld the "One-China" policy. However, geopolitical dynamics complicate their relationship. Factors such as geography, resources, political ideologies, and regional power structures significantly influence domestic and international policies. Nepal’s southern neighbor, India, has long expressed concerns about Chinese-funded infrastructure projects in Nepal. This unease dates back to the construction of the Kodari Highway in the 1960s and continues today with ongoing many projects and hydropower ventures involving Chinese investment and contractors. India’s refusal to purchase electricity from these projects has cast doubts on their economic viability. Meanwhile, China seeks a stable and strong government in Nepal to foster ongoing economic collaboration and mutual trust. Nepal must also ensure border security to prevent anti-Chinese activities, maintaining smooth bilateral relations. The 2019 trade and transit agreement between Nepal and China, which aims to ease Nepal's landlocked status, should be fully implemented, with the proposed railway linking the two countries acting as a potential gateway to Nepal’s economic growth. To ensure stability, India must recognize and respect Nepal’s sovereignty in its dealings with China. This study employs a qualitative, exploratory approach, utilizing secondary data from journal articles, books, and reliable sources.

DOI: 10.33545/26646021.2025.v7.i1a.424

Pages: 28-33 | Views: 65 | Downloads: 13

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