China today promised “non- interference” in Nepal’s internal affairs as the two sides signed 10 agreements including a landmark transit treaty to end the land-locked country’s total dependence on India while Beijing agreed to extend the strategic Tibet rail link to Nepal to boost connectivity.
On his maiden visit to China close on the heels of his recent visit to India, Nepalese Prime Minister K P Oli held wide-ranging talks with Chinese Premier Li Keqiang and called on President Xi Jinping.
“China firmly supports Nepal’s efforts to safeguard sovereignty, independence and territorial integrity as well as the Nepali people’s choice of development path, and will not interfere in Nepal’s internal affairs,” Li said.
He also praised the recent constitutional process in Nepal that led to a major political crisis in the country.
Premier Li’s strong backing to Nepal comes in the backdrop of a chill in its relations with India following the months-long crippling blockade by Madhesis, mostly of Indian-origin, demanding amendments to the newly-enacted Constitution to ensure adequate political representation and reorganisation of the federal boundaries.
Li also pledged that China will boost cooperation in “key” areas with Nepal, including connectivity, industrial capacity, oil and gas, trade, tourism and law enforcement, state-run Xinhua news agency reported.
After the talks, the two sides signed 10 agreements including the transit treaty ending conflicting reports from Kathmandu that Oli may defer it.
The much-publicised transit trade treaty will end Nepal’s total dependency on Indian sea ports for third-country trade.
They also signed a Memorandum of Understanding on a feasibility study on a free trade area (FTA).
Under this, the two countries will set up a working group to research areas of common concern, an official statement said.
China’s non-financial outbound direct investment in Nepal was at USD 32.03 million in 2015 while bilateral trade hit USD 866 million.
The FTA will further boost bilateral trade and investment, the statement said.
Oli, who arrived here yesterday on seven-day visit to China, was given a red carpet welcome by Premier Li at the ornate Great Hall of the People here.
Oli’s high-profile visit comes as Nepal seeks to open more supply routes from China amid fears of a repeat of recent nearly six-month long blockade when the Madhesis blocked Nepal’s trade-routes with India, throwing normal life out of gear.
Expressing satisfaction over the direction of the ties,
the two prime ministers “exchanged substantive views on further strengthening and consolidating mutual trust and understanding as well as promoting mutually beneficial cooperation in various fields,” a release issued by Nepalese Foreign Ministry in Kathmandu said.
“Trade diversification, cross border connectivity and infrastructure development, cooperation on energy, tourism, finance, education and culture were among the matters that figured prominently during the talks,” it said.
During his talks with Li, Oli mooted extension of China’s strategic railway link with Tibet further to Nepal.
Briefing the media about Li-Oli talks,Hou Yanqi, deputy head of Asia Divisionof the Chinese Foreign Ministry, said: “Nepal Prime Minister wanted to explore two rail lines.”
Hou said the government would encourage Chinese firms to look at the internal rail plan and that China was already planning to extend the railway from the Tibetan city of Shigatse to Gyirong on the Nepal border.
“Of course, a further extension from Gyirong is an even long-term plan. It’s up to geographic and technical conditions, financing ability. We believe that far in the future the two countries will be connected by rail,” she said.
Oli’s request for two railway links with China came as the Communist giant has been successfully operating the world’s highest railway line to Tibet.
The 1,956 km-long railway line was operationalised in 2006.
China had recently announced plans to build a second railway link with Tibet.
After that the Qinghai-Tibet Railway was extended from Lhasa to Shigatse in Tibet in 2014, it was expected that the construction of railways connecting Shigatse with Gyirong county, bordering Nepal, and with Yatung county bordering India and Bhutan, would start during the 13th Five-Year Plan period (2016-20), state-runGlobal Timeshad quoted a strategic think tank as saying.
About the transit treaty, observers say while it provides a new opening for Nepal which has already got over 1000 mt of petroleum products from China during the blockade, it is seen as the most expensive proposition as the supplies have to be routed through the arduous Himalayan terrain of Tibet.
The other agreements included China’s assistance to build a new airport and a border bridge over the Simikot-Hilsa road section that will connect Humla district with Tibet.
They also inked a treaty on economic and technical cooperation to build a Regional International Airport Project at Pokhara, Nepal’s famous tourist site.
China and Nepal also decided to initiate a feasibility study on Chinese assistance to Nepal for exploration of oil and gas resources.
The Chinese government will encourage Chinese banks to set up branches in Nepal, Li said.
Oli, on his part said China-Nepal ties are not be affected by any external factor, an oblique reference to Nepal’s ties with India.
