Following the first “goodwill” state visit to the People’s Republic of China by King Gyanendra after his accession to the throne, Nepal-China relations have entered a new phase of constructive cooperation. Nepal, which has been passing through a violent Maoist insurgency, witnessing a disruption in its development process, has secured strong moral and political assurances from leaders of its northern neighbor for all-round development. The strong solidarity shown by Chinese leaders against Nepal’s problems is a remarkable achievement of the visit. Expressing firm concern against any form of outside interference in Nepal’s internal affairs, Chinese leaders have reaffirmed their commitment to an independent, stable and prosperous Nepal
By KESHAB POUDEL
By choosing India and China for his first foreign visits after ascending the throne a year ago, King Gyanendra has underscored the great importance Nepal attaches to maintaining friendly and harmonious ties with its giant neighbors in its effort to emerge as a prosperous and stable nation. Less than a fortnight after concluding his maiden visit to India, King Gyanendra secured the backing of Nepal’s northern neighbor for the kingdom’s quest for development and prosperity.
Late King Birendra (middle) talks with visiting Chinese Premier Zhu Rongji, then PM Koirala (left) joining in the talks : Lasting relations
Late King Birendra (middle) talks with visiting Chinese Premier Zhu Rongji, then PM Koirala (left) joining in the talks : Lasting relations
Divided by the massive Himalayan range, China, which has maintained friendly and cooperative relations with its small land-locked neighbor, has reiterated its interest in strengthening constructive cooperation with Nepal. Carefully avoiding any confrontational remarks against outsiders willing to involve themselves in Nepal’s development, Chinese leaders have laid stressed on a harmonious and constructive approach to the development and prosperity of its small western neighbor.
The importance of the visit is signified by fact that King Gyanendra met four out of China’s seven politburo members, including President Jiang Zemin, Chairman of National People Congress (NPC) Li Peng, Vice-President Hu Jintao and Premier Zhu Rongji. All of them stressed the need to enhance constructive and cooperative relations with Nepal and reaffirmed their support to Nepal’s sovereignty and independence.
The four bilateral agreements signed in the presence of King Gyanendra and President Jiang herald a new phase of economic cooperation and trade. Under the first agreement, China will support Nepal in upgrading and developing infrastructures and will provide other economic benefits. Nepal will receive Rs. 780 million as a grant.
The second agreement will pave the way for promoting bilateral trade, including border trade between the Tibet Autonomous Region and Nepal, transportation and tourism. According to Nepal Rastra Bank, bilateral trade between the Tibet Autonomous Region and Nepal is over Rs. 5 billion.
The accord will help to improve the relations between the people living along the border. The Trade Treaty was first signed in 1956 and expired in 1996. The agreement stipulates that the two countries should protect and provide facilities for border traders either in barter or cash. The full use of Lhasa-Kathmandu Highway on a reciprocal basis to improve passenger and cargo transport is another milestone of the agreement. Nepalese business groups will benefit from the railway link to Lhasa.
The agreement on opening a new honorary consulate in Shanghai promises to encourage Chinese tourists to visit Nepal. The constitution of the China-Nepal friendship Association will further promote people-to-people relations.
The foundation of the new phase of bilateral relations was laid during President Jiang’s visit to Nepal in 1996. Late King Birendra and President Jiang had propounded “good neighborly partnership” as a basis for relations over the long term. “The two countries agreed to set up a good neighborly partnership lasting from generation to generation during Chinese President Jiang’s visit to Nepal in 1996,” recalled Vice-President Hu during his meeting with King Gyanendra.
Fruitful Visit
Although it was basically a goodwill visit by a constitutional monarch, it has helped to further boost the traditional relations between the two countries. “King Gyanendra’s state visit is a part of vigorous continual relations between the two countries,” said Madan Regmi, chairman of the Nepal-China Study Center. “The good neighborly partnership was based on greater economic relations. Experience has shown that the partnership between a small country like Nepal and a big country like China is mutually beneficial. During Girija Prasad Koirala’s last tenure as prime minister, Nepal and China signed many agreements to materialize the new relations.”
During the last five decades, China has taken resolute steps toward helping Nepal become economically strong and prosperous. Chinese policymakers hold the view that a prosperous and economically powerful Nepal can sustain its independence and contribute to the region’s stability. By declaring Nepal as a destination for Chinese tourists and moving toward opening up a new road to Tibet, Chinese leaders have translated that commitment into concrete action.
Chinese-aided highways constructed during the 1970s and 1980s have drastically changed the lives of Nepalis in the mid-hilly regions. By building cotton, sugar, leather and brick factories, among other things, China helped Nepal enter a new phase of industrialization. By encouraging Chinese businessmen to invest in Nepal, Chinese leaders have underscored the dynamism that underpins bilateral ties.
Chinese Policy
Nepal has been facing one of the worst crises in its history in the form of a violent insurgency that has disrupted the kingdom’s development and political processes. Chinese leaders have exhibited maturity and sensitivity in dealing with Nepal during its hour of trial. By signaling their displeasure against possible involvement of outside powers in tackling the insurgency, Chinese leaders have reaffirmed their abiding support for Nepal’s sovereignty and territorial integrity.
“We understand the difficulties faced by Nepal. That kind of assistance can be used for development and security of Nepal. Some countries are utilizing this situation as an excuse to provide assistance to Nepal. In this excuse, they could intervene in the internal affairs of Nepal. The Chinese government will provide its support within our capacity on the basis of the principal of non-inference in Nepal’s internal affairs,” said Chinese Ambassador to Nepal Wu Congyong. (See SPOTLIGHT 5-11 July, 2002)
Assuring western donors who have been expressing concern over the growing violence in Nepal and its potential to create long-term instability in the region, China has proposed a new package for long-term economic development in Nepal that would bring prosperity and stability. Disowning the Maoists, Chinese leaders have clearly supported the Nepalese government’s moves to contain the insurgency. “The Maoists are anti-government rebels and we don’t have anything to do with them. We will support the Nepalese government’s efforts to curb terrorism,” said a spokesman for the Chinese Foreign Ministry.
This is seen as a clear reflection of the Chinese government’s stand against the insurgency in Nepal. “China believes that all countries are equal regardless of size and wealth, and no interference in the internal affairs of a sovereign country should be allowed,” said NPC chairman Li Peng. “China fully supports and understands the efforts of the Nepalese king and the government to safeguard Nepal’s sovereignty, unity and stability.”
Promoting stability in Nepal has always been a Chinese priority, experts say. “Chinese policy toward Nepal is based on realpolitik rather than ideology. Chinese interest is not based on any revolutionary principle and it promotes Nepal’s stability, sovereignty, independence and development,” said Dev Raj Dahal, reader at the Political Science Department of Tribhuvan University. “During King Gyanendra’s state visit, both countries reinforced the identity of interests between the nations.”
The desire to see Nepal as a peaceful and stable state predates both the founding of the People’s Republic of China and the independence of India. According to British historian Alaster Lamb, the British colonialists in the subcontinent sought to maintain tranquility and stability in Nepal, fearing that any disruption in Nepal might produce prolonged instability on the Afghan pattern. During the period, Nepal remained a model buffer state between British India and China.
Nepal’s tranquility and stability has been undermined following the withdrawal of the British from the subcontinent. In the last five decades, Nepal has frequently encountered various kinds of insurgencies and political instability.
During King Gyanendra’s visit, Chinese leaders indicated that they, too, have concerns about internal disturbances in Nepal. Instead of striking a confrontational posture or using provocative words, however, Chinese leaders have extended the hand of economic cooperation.
Nepal has been facing a two-pronged problem in recent times. After the split in the ruling Nepali Congress, extended political instability looms large on the horizon. This is bound to exacerbate the disruptions caused by the Maoist violence.
Offering full moral and political support to Nepal to tide over its difficulties, the Chinese government has shown that it wants constructive and cooperative relations with Nepal as part of its long-standing commitment to making Nepal economically strong.
At a time when conditions in Tibet have stabilized, Chinese leaders have taken a step forward and indicated their displeasure at moves to interfere in the internal affairs of Nepal. Chinese leaders have reaffirmed their confidence that Nepal is capable of handling the present crisis on its own.
“King Gyanendra’s visit has been very successful in establishing good understanding and friendship with the Chinese leadership. The fact that the king met four out of seven top leaders of the country carries great significance,” said Regmi.
Chinese leaders used the visit to reiterate their firm belief that a strong and stable Nepal is in the best interest of the region. When the Tibetan capital Lhasa is linked by rail to the Chinese heartland, the northern regions of Nepal can expect a transformation. “Chinese leaders have adequately indicated their willingness to help build infrastructure along the northern border of Nepal in order to give new life to the region. However, we must take our own initiatives to take advantage of this reality,” said Jhal Nath Khanal, CPN-UML leader.
Besides providing strong moral and political support to the Nepalese government’s actions against the Maoist insurgents, China has also offered economic incentives, including the grant assistance of Rs.780 million. The money will be used to build the 18-km Syaphrubeshi road, a hospital for civil servants and Poly-Technic Institute in Banepa.
Four-Point Proposal
The Chinese president laid forth a four-point proposal that would be guiding Chinese policy toward Nepal. He clearly points out the need to encourage exchanges between congresses, political parties, industrial and commercial groups, press and non-governmental organizations from both countries. “These four points will add a new dimension in Nepal-China relations in coming days,” said Regmi. “I think after the visit of King Gyanendra, bilateral relations will improve further and get more synergy.”
In their talks with King Gyanendra, Chinese leaders reaffirmed their long-standing commitment to Nepal’s sovereignty, territorial integrity and independence and their opposition to foreign aggression and intervention in the country. “King Gyanendra held free and frank talks with Chinese leaders which will undoubtedly enhance our relations. Chinese leaders have great admiration for late King Birendra,” Regmi said.
In all the meetings, Chinese leaders stressed the need to promote bilateral relations along the path propounded by late King Birendra. The impression left by late King Birendra in the mind of Chinese people is remarkable. “Late King Birendra visited China 10 times, and made tremendous contributions to consolidate and develop our friendly ties,” said Chinese ambassador Wu.
“China has always given top priority to state-to-state relations and the visit of the constitutional monarch King Gyanendra will help to improve bilateral relations. Regardless of who is in power, the Chinese policy continues to be the same,” said Dr. Lok Raj Baral, executive chairman of Nepal Center for Contemporary Studies and former Royal Nepalese Ambassador to India. “The Chinese are basically concerned with anti-China activities from other countries. Nepal, for its part, has been assuring Chinese leaders that it will not allow its land to be used their country.”
Professor Dhruba Kumar of the Center for Nepal and Asian Studies of Tribhuvan University says: “Along with strengthening bilateral relations, the visit of King Gyanendra has helped Nepal understand the economic development taking place in China. Being a close neighbor, we cannot ignore the economic opportunities there. Chinese leaders are taking new initiatives to expand their development efforts to the west. Nepal must think about developing infrastructures to seize this great opportunity.”
Although Nepal and China had a very small volume of bilateral trade in 1990s, it has increased by many folds in recent years. Nepal imports goods worth more than Rs.10 billion from China each year. The growing bilateral trade indicates that the two countries have great potential to further expand trade. The Chinese government’s decision to declare Nepal as a destination for Chinese tourist also contains great promise for the kingdom.
History Of Nepal-China relations
Sandwiched between two giants – India to the south and China to the north – Nepal has maintained friendly cooperation with both neighbors. Although in terms of religion, culture and geography, Nepal has had more contacts with India, the kingdom has always given importance to its northern neighbor, with which its shares a 1,400-km border.
China has had long and historical relations with Nepal. Historian Lamb traces modern links to 1792. Even after the Sugauli Treaty of 1814 with British India, Nepal constantly maintained strong relations with China, sending a delegation annually to offer gifts to the Chinese emperor. The practice continued until 1911 when revolutionaries overthrew the Chinese emperor.
Vice-President Hu recalled that Sino-Nepalese good neighborliness dated back over 1,500 years and voiced pleasure at the strength of the bilateral friendship that had withstood the test of changes on both the domestic and international fronts.
Brian Houghton Hodgson, the first British Resident at the Court of Nepal, mentioned Chinese links in Nepal during his tenure in 1833. “The Celestial Emperor is their idol, and by the way, whilst I write, the (Nepalese) sovereign himself is passing by the Residency in all royal pomp. in order to receive a letter which has just reached Nepal from Peking.” (“The Life of Brian Houghton Hodgson British Resident At the Court of Nepal” by William Wilson Hunter.)
Nepal-China relations were in a low key between 1911 and 1950, when Chinese power was weak. After the Chinese regained control in Tibet in 1950, the situation changed. The India-China war in 1962 left its reverberations in the peaceful mountainous kingdom. Since then, Nepal has had to face many spillover effects of the cold war between the regional giants.
“Whatever situation emerges in the world, China will continues to follow similar policies toward Nepal. Whatever changes may happen in the international and regional scenario, the above said policies remain intact,” said Chinese ambassador Wu.
“Except for a few years of interruption, the Chinese have a long history of continuity in their power structure. So they don’t have differences in policy matters. Since diplomacy is guided by stable government in the center, Chinese won’t change their policy towards Nepal,” said a former diplomat. “Stability in foreign policy requires stability in the government. The Chinese have the advantage of a political system which does not see frequent changes in the leadership.”
Economic Cooperation
China is the fourth largest investor in Nepal after India, the United States, Britain and Norway. Bilateral trade has increased by several folds. Booming economic cooperation† has opened two more trading points, bringing the total to five. Chinese leaders have assured Nepal that they would encourage more Chinese investors to invest in the kingdom.
“The Chinese government will encourage and support more Chinese businesses to cooperate with their Nepalese counterparts. By participating in the economic construction of Nepal, they will help the Nepalese people,” Premier Zhu was quoted as saying by Xinhua, the official Chinese news agency.
History has shown that China has continually followed a clear policy towards Nepal, promoting† stability along its 1,400-km border. Even during the time of the Khampa rebellion, the Chinese hardly made any effort to irritate Nepal. Ever since 1814, Chinese have always avoided confrontation in Nepal. This tranquility has provided Nepal with great opportunities for economic development.
By indicating their desire to open another road link to Nepal via† Mustang-Jomsom-Baglung and Pokhara after the completion of second road through Syaphrubeshi, Chinese leaders have underscored their interest to increase bilateral trade.
According to the Chinese Embassy’s web-site, Nepal’s total trade volume with its northern neighbor continues to rise. In 1999, Nepal exported goods worth Rs. 207.02 million, while imports were valued at Rs. 8.34 million. In 2000, the volume of export fell to Rs. 197.07 million and imports to Rs. 7.14 million. In 2002, the volume fell to Rs. 153.21 million and imports to Rs. 4.63 million. Nepal’s trade with the Tibet Autonomous Region, however, continues to increase.
Jagdish Bhagwati, fellow at the Council on Foreign Relations and professor at Columbia University In New York City says, “There are several reasons to be more comfortable about China’s rise than doomsayers would have us believe.”
Chinese leaders have once again firmly indicated their commitment to the stability and economic prosperity of Nepal. They have expressed their desire to maintain stability in the region by increasing economic cooperation and supporting Nepal’s efforts to curb violence. Nepal, too, needs to show prudence and maturity in cultivating this relationship. Nepal’s survival is dependent upon maintaining close cooperation and harmony between its two giant neighbors.
China Is A Trustworthy Friend: King Gyanendra
During his meeting with President Jiang Zemin, King Gyanendra said, as China’s close friend, Nepal would adhere to its friendly policy towards the nation and adhere to the one-China principle. Nepal would allow nothing to deter the smooth growth of bilateral relations, nor would permit its territory to be used as a venue for any activity undermining China’s interests.
Meeting with National People’s Congress Chairman Li Peng, King Gyanendra described his visit to China as a success which would strengthen the friendship between Nepal and China. Meeting with† Vice-President Hu Jintao, King Gyanendra said China was a reliable and trustworthy friend and had offered assistance to Nepal in time of need. This visit will further promote bilateral relations, he added. Nepal appreciated China’s support and assistance in the past. Nepal would strengthen cooperation with China and Tibet in particular, in various fields and in non-governmental exchanges.
Meeting with Premier Zhu, King Gyanendra said he would uphold the friendly foreign policy towards China initiated by his father and late brother. Nepal would spare no effort to keep friendship and trust alive between Nepal and China. Praising China’s economic achievements, King Gyanendra said Nepal hoped to learn from China’s experience. Nepal thanked China for its understanding and support for its efforts in fighting against terrorism and resolving social, and economic difficulties. King Gyanendra said Nepal was keen to see more Chinese tourists and entrepreneurs visiting the country.
(Compiled from Xinhua reports)
Ties Lifted To New Level: President Jiang
During his meeting with King Gyanendra, President Jiang Zemin said China and its western neighbour should and will have still closer ties. No historical problems or present disputes exist between the two countries, who face only the common task of further improving their friendship. China supports the efforts of King Gyanendra and the Nepalese government to crack down on anti-government rebels. China opposes and condemns all violence and terrorist activities. King Gyanendra’s current visit would lift bilateral ties to a new level. Both sides should conduct range of multi-level exchange. Apart from continuing the traditional practice of top leaders’ visits, more exchanges should be encouraged between Congresses, political parties, industrial and commercial circles, the press and non-governmental organizations from both the countries.
Both sides should try harder to explore bilateral trade and economic cooperation, to elevate exchange and cooperation between China’s Tibet and Nepal and to boost communication and cooperation in regional and international affairs. The agreement on trade signed between China’s Tibet and Nepal will greatly facilitate communication and cooperation between Tibet and Nepal. We sincerely thank Nepal for its long-standing support in issue like Tibet, Taiwan and human rights. I hope to continue such good cooperation in the international arena.
Nepal is one of the important neighbors [of China] and both sides have always supported each other as equals. China is a trustworthy neighbor of Nepal. King Gyanendra has played important role in maintaining political stability, economic growth and improving people’s living standard.