China to give $118 mn assistance to Nepal

Beijing/Kathmandu, August 11

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Facing headwinds over its South Asia push after Sri Lanka’s worst economic crisis, China has warmed up to Nepal by pledging $118 million in aid and announcing a slew of trade concessions while vowing to speed up work on the stalled Belt and Road Initiative (BRI) projects.

Chinese Foreign Minister Wang Yi announced the concessions for Nepal in his meeting with his Nepalese counterpart Narayan Khadka in the eastern Chinese city of Qingdao on Wednesday.

Khadka was on his first visit to China since Sher Bahadur Deuba took over as Prime Minister of Nepal replacing the pro-Beijing KP Sharma Oli last year after which Kathmandu struck a more balanced foreign policy, firming up ties with India and the US.

Early this year, China expressed concern over the Nepal Parliament’s ratification of the contentious US-funded $ 500 million Millennium Challenge Corporation compact, ending months of deadlock between the Nepalese political parties.

Foreign Minister Wang announced $118 million in aid to Nepal and fund the feasibility study of the China-Nepal cross-border railway through the Himalayas via Tibet over which experts have raised concerns about the likely damage it could cause to the fragile ecosystem. —