Underlining the growing role of China in South Asia, Nepal on Monday secured transit rights through China following an agreement in Beijing between Prime Minister K.P. Sharma Oli and his Chinese counterpart Li Keqiang.
Earlier, China extended a ceremonial welcome to Mr. Oli who held official talks with the Chinese leadership. News reports said Mr. Oli would also conclude agreements on building of multiple train routes connecting Nepal with China’s key production centres.
However, playing down the impact of the agreements between Nepal and China, official sources told The Hindu that the future of the agreements depended on the issue of “economic viability” of the transit facilities and train connectivity projects.
The Ministry of External Affairs, however, refused to issue an official statement immediately, considering that the agreements were between two sovereign countries.
However, officials pointed out that India-Nepal ties could not be compared or curtailed by Nepal’s agreements with China.
“After all, 98 per cent of Nepal’s third country trade goes through India and to the port of Kolkata,” an official pointed out. India at present has two rail lines under construction and three more are being planned to increase Nepal’s trade ties.
During the February visit of Prime Minister Oli to New Delhi, India agreed on giving dedicated access to Nepal to the port of Vizag.
Officials pointed out that in comparison to the Nepal-China agreement, India and Nepal had 25 crossing points, two integrated checkpoints and 2 more checkpoints were under construction.
A challenge for South Asia, says expert
Even as official sources played down the impact of the transit rights through China, Nepal Prime Minister K.P. Sharma Oli clinched in an agreement with his Chinese counterpart Li Keqiang in Beijing on Monday and other proposed agreements for rail connectivity, diplomat and academic Dr. S.D. Muni pointed out that the development represented “a challenge not just for India but for entire South Asia.” However, he cautioned, it should not trigger a panic reaction from India.
Dr. Muni pointed out that China would have to ponder about how it could implement a rail and transit agreement for Nepal without opening up the Tibet region to the world.
“Rail connectivity from Nepal to China will be used by the non-Chinese to travel to China through Tibet. Will China open up Tibet to facilitate connectivity for Nepal?” asked Dr. Muni.
The agreements, however, will take some time before being implemented on the ground and political developments may impact the deals concluded. However, Dr. Muni pointed out that the implementation of the deals would depend on how far China was willing to invest in Nepal considering the economic and political risks associated with the deals. However, as of Monday, Nepal could not seal a vital fuel supply agreement with China which Nepali sources said would also come up for detailed discussion during the seven-day visit of Mr. Oli to China.
Nepali commentator Kanak Mani Dixit, pointed out that the five month-blockade on the Nepal-India border which ended in February, “pushed Nepal to open its northern borders with China for transit trade.”
“Historically, the Himalayas were seen as barrier but now the Himalayas can be a connector between Nepal and China,” said Mr. Dixit, underlining that transit and train agreements will create new dynamics in South Asia.
