Shikhar Insurance

Prime Minister’s China visit: issues of Economic co-operation

Lima Adhikari
२०८० आश्विन ४, बिहीबार १३:१२
NIMB
Nabil Bank

Prime Minister Pushpa Kamal Dahal (Prachanda) of Nepal is heading to China for a visit. To ensure that Nepal benefits from this visit in terms of development and economic progress, the Prime Minister  it necessary to implement the following measures:

1- It has been six years since Nepal signed the BRI project. Earlier, Nepal had signed the project in May 2017 when Prime Minister Dahal was the Prime Minister of the country for the second time. Nepal has also signed with great interest and discussion in this project, which has been promoted by China as a global project since 2013 by the current Chinese President Xi Jinping, giving priority to road network and other physical infrastructure projects. Nepal has proposed a list of 35 different projects to be carried out under this, but China has agreed to nine of them. China has agreed to build tunnels and railways and other development projects in those nine projects. But even till today, none of the projects  has kicked off till date, these projects have not been able to start meaningfully. Although those projects have been implemented in Nepal in one way or another and are being prepared to come, they have not been kept within the ‘framework’ of the BRI project. Therefore, during Prime Minister Dahal’s visit to China  it is more important for the clarification of this issue and the implementation plan of these projects.

Citizen Life
Kumar Bank
Nepal Life

Under BRI framework, China side should help Nepal to promote connectivity via 3 main corridors  Apart from Kerung-KTM & Tatopani-KTM:

Koshi Corridor (Dhankutta- Leguwa-Kimathanka Section)  Project : About 185 KM.

Gandaki Corridor : Via Korala of Mustang District -Banglung-Palpa-Sunauli -total of 420KM

Karnali Corridor:

*  The road starts from Surkhet, the capital of Karnali province of Nepal and ends at Hilsa, Nepal, connecting with the Pulan Port of China.

*  The project passes through 5 counties in Karnali & Soodurpaschim Province such as Surkhet, Dailekh, Kalikot, Bajura, and Humla.

*  The total length of the project is about 403.521km,

including 282.371km of reconstruction and expansion of the existing road and 121.15km of new construction.

On cross-border Transmission Line cooperation front, Nepal and China should jointly develop Kerung Rasuwagadhi-Galchhi-Ratmate 400kv Transmission Line to export electricity generated from Nepal to China. So far the feasibility is completed and both country need to  join hands to take the project forward with DPR completed and implementation kicked off.

Nepal and China joined hands to develop first ever cross-border 400 kv transmission line.  Both countries formed a joint technical team to expedite its construction in government-to-government (G2G) model. However, project is in initial stage with no apparent progress on the preparation of a detailed project report, construction and funding modalities. During Chinese Foreign Minister and State Councilor Wang Yi’s visit to Nepal, both sides signed an agreement for the immediate construction of the 400kv transmission line project.

2- At present, China is second largest trading partner. Though volume of bilateral trade is small, trade deficit against Nepal is widening. Nepal has duty free access for 7787 items in China. Government of Nepal is encouraging businessmen to increase exports to China. Along with bilateral trade agreements, there is also an intergovernmental trade and economic committee at Vice Ministers’ level for enhancing trade and economic activities between the two countries. There is also a separate trade facilitation mechanism between Nepal and TAR of China. Nepal and TAR of China also hold Nepal-China’s Tibet Economic and Trade Fair every two years in Kathmandu and Lhasa alternatively. Nepal’s imports from China fell to $1.84 billion in 2022 from $2.38 billion a year ago, while exports totalled $5.39 million, down from $8.37 million in the same period, official data showed.

Nepal’s growing trade deficit with China and the apparent gaps in commitment and actual investment of FDI from China are some of the issues that needed a practical solution in days to come.

3- We have not been able to exchange the goods according to the zero customs facilities that we have received. It is also important to discuss the obstacles of not being able to get customs facilities.

In addition to this, since China, as a neighbor, has recently published an old map of Nepal, it is important to be clear about this issue in the upcoming visit of Prime Minister Dahal. If the border or other similar bilateral diplomatic issues cannot be brought to the negotiation table and clarified before they spread, it may not be meaningful later. Therefore, it is necessary for Nepal’s diplomatic system to be aware of this.

4- In recent times, China has vigorously promoted the poverty alleviation program. Although the world is still in the post-Covid epidemic situation (post-Covid period), but at the end of 2020, China announced the progress of lifting about 8.4 million Chinese people out of extreme poverty. China has strongly implemented the poverty alleviation agenda in the country.

In 2014, Chinese President Xi Zing Ping put forward the agenda of poverty alleviation in China and instructed all government agencies and their policies and programs to follow it.

Because the basis of this poverty alleviation program taken by China is agriculture. To reduce and eliminate poverty in the country, they have increased investment and given importance to agriculture. Before and after the Corona epidemic, Chinese agricultural produce and its export have been paid attention to. If Nepal can take something from this campaign of grain production, it is certain that almost an agricultural countr like us will benefit.

5- The protocol of the Nepal-China Transit Treaty provides that international trade can be done through 6 boarder points between the two countries. According to which it has been arranged that transportation can be done through Kerung, Tatopani, Kapmathanka, Oladchudgaela, Hilsa, Karela checkpoints in Rasuwa. But currently only Rasuwa, Tatopani and Hilsa channels are open and even the local  boarder points are closed because of which

The Himalayan region is affected due to the non-opening of the border with China. We would like to request government of China to support in this issue.

6- Tourism: The population of the North and South neighbourhs are more than two and half billion, but Nepal has been wondering here and there to look for few millions tourist.If we can bring even one million tourist from China each year our tourism industry can boost up. As we all know two international airports are ready in Pokara and Lumbini with Chinese Cooperation and involvement we should request government of China to Consider direct flights from Lumbini, Pokhara and Kathmandu to the Chinese Cities. Currently half a dozen of Chinese airlines regularly fly to Nepal and Chinese tourist growth is the higest in Nepal in recent years.

7- We have international airports but we have not been able to fly to foreign countries from there, for this too our diplomatic initiatives needs to be more brodern in days to come.

8- The northern neighbor is making a successful plan to reduce poverty in the country with the help of agricultural produce, but on the other hand, the ground of our agricultural production is collapsing day by day. We are becoming dependent on agricultural produce. That is why our traditional agricultural production is no longer able to sustain us. For this, now we need to make the agricultural system state-of-the-art and based on productivity only . If China can help us in promoting mordern agricultural through advanved technology, techniques and advanced skills which can conrtibute to farmers efficency and can promote commercial agriculture in Nepal.

9- another important factor we should improve people to people relation between China and Nepal. Compare to China we have better People to people relation with India.

10- We have not been able to exchange the goods according to the zero customs facilities that we have received. It is also important to discuss the obstacles of not being able to get customs facilities.

In addition to this, since China, as a neighbor, has recently published an old map of Nepal, it is important to be clear about this issue in the upcoming visit of Prime Minister Dahal. If the border or other similar bilateral diplomatic issues cannot be brought to the negotiation table and clarified before they spread, it may not be meaningful later. Therefore, it is necessary for Nepal’s diplomatic system to be aware of this.

GBIME

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