Oli closes deal with China and secures financial aid, but government faces debt fears and dilemma between China and India
Nepal Prime Minister KP Sharma Oli’s visit to China paved the way for a new push for infrastructure cooperation under the Belt and Road Initiative, a move seen as crucial to Nepal’s economic goals but fraught with tensions. within the government coalition due to fear of debt and the risk of political repercussions with its traditional ally, India.
During his four-day visit to Beijing, Oli met Chinese President Xi Jinping, signed a framework agreement under China’s Belt and Road Initiative and obtained 300 million yuan ($41 million) in financial assistance.
China and Nepal initially signed a Belt and Road agreement in 2017, but no projects have been planned or implemented since then. Analysts say the new agreement will revitalize projects, which could include improvements to highways and transportation corridors.
Oli also met with Premier Li Qiang and signed nine agreements, including Beijing’s support for the construction of a tunnel between Kathmandu and the Chinese border, according to Nepal’s foreign ministry.
This was Oli’s first international trip after taking office for his fourth term as prime minister in July.
Traditionally, Nepali leaders visit New Delhi first; however, this trip marks a break from that norm.
With information from the South China Morning Post*
Source: https://www.ocafezinho.com/2024/12/05/entre-a-promessa-chinesa-e-o-temor-indiano-nepal-se-rende-ao-cinturao-e-rota/
