NEPAL-CHINA RELATIONS

About:

• This allows the transit of goods from other countries to Nepal via all of China’s ports, including Tianjin, Shenzhen, Lianygang, Zhanziang and dry-ports that include Lhanzin, Lhasa and Shigatse.
  
  
• Negotiations for Transit protocol were initiated in 2016 after the economic blockade by India.
  
  

Comment:

• Significance:
  • This will end Nepal’s heavy dependence on Indian ports for trade with other countries.
    
    
  • Overland trade to and from Nepal is now routed mainly through Kolkata which takes up to three months.
    
    
  
  
  
• Challenges:
  • Plan to connect Nepal with China could face issues due to a lack of proper roads and customs infrastructure on the Nepalese side of the border.
    
    
  • The nearest Chinese port is also located more than 2,600 km from its border.
    
    
  
  
  
• China’s inroad in Nepal:
  • The two sides are conducting a feasibility study for a Free Trade Agreement (FTA) and are planning to construct a railway link into Nepal and an electric transmission line.
    
    
  • China is thus challenging India’s long-held position as the dominant outside power.