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Home | Columns | Opinion The China Factor In India Nepal Relations Opinion: The China factor in India-Nepal relations While it is reasonable to assume a strong cultural bond between India and Nepal, complacency could be detrimental, especially in the face of tough competition from China By Telangana Today Published Date - 24 December 2024, 10:34 PM File Photo By Dhananjay Tripathi Recently, India-Nepal ties re-emerged in the news headlines due to KP Oli’s decision to visit China. Oli, the present Prime Minister of Nepal, took the oath in July 2024. His visit to China drew the attention of Indian analysts as many believed it was a break of traditions. Oli opted for China over India for his first visit to the neighbourhood. However, Nepal experts allege that New Delhi has delayed the invitation. Also Read India’s new quest for regional identity Opinion: Shifting geopolitics in South Asia Rewind: Rail and regional trade Whatever the reason, he went to China, signed nine agreements, met President Xi Jinping and discussed the revival of the Belt and Road Initiative (BRI) in what is termed a framework for Belt and Road Cooperation. It is to be noted that Nepal was a signatory of the BRI but due to apprehension of being overloaded by debt, it moved cautiously and the projects envisioned under it have not been operationalised according to the plan. Failed BRI — A Case of Pokhara International Airport? Due to the lacklustre progress of the BRI) in Nepal, several projects that received support from China have since been classified under the BRI. A prime example of this is the Pokhara International Airport. This airport was constructed at a cost of over $216 million, with nearly $215 million provided by the Chinese government in the form of a soft loan. Although the airport is classified as an international facility, it currently has no direct international flights. To demonstrate its success, China arranged a chartered flight from Sichuan to Pokhara International Airport in June 2023. However, in practical terms, the number of international flights to this destination remains very limited. Curious Case of Chinese Debt There are several direct flights from Kathmandu to Pokhara. Nevertheless, experts believe that given the current revenue generation, it may be difficult to repay the loan within 20 years after the end of the initial grace period. Estimates indicate that Nepal must repay the loan for the construction of the airport with an interest rate of 2%, although some independent sources report the interest rate could be as high as 5%, in addition to other costs. Interestingly, similar to other projects in South Asia, the contract to build the airport was awarded to a Chinese company. China CAMC Engineering Company Limited was responsible for constructing Pokhara International Airport, resulting in a significant portion of the loan being recycled, as the construction contracts were granted to the Chinese firm. India remains the largest source of FDI in Nepal but China’s overall investment is increasing and trade between them stood at around $1.8 billion in 2023 The repayment amount, including interest, will be substantial for Nepal, especially considering the current flight operations at this airport. A report indicates that the airport requires approximately 100 daily domestic and 50 international flights per week to cover its expenses. Currently, there are no more than 30 domestic flights each day and no international flights operating from this airport. In summary, the airport will need an extraordinary intervention to repay the Chinese loan. There have been reports that both Prachanda and, more recently, Oli have requested concessions from China, but they have yet to receive a positive response from Beijing. Even for those who disagree with the “debt trap theory” in principle, this case provides grounds for examination. India remains the largest source of foreign direct investment ( FDI ) in Nepal; however, China’s overall investment is increasing. In 2023, trade between China and Nepal reached approximately $1.8 billion, which is an increase of more than 7% compared to the previous years. China is significantly investing in infrastructure projects, particularly in the energy sector, with many of these initiatives funded by Chinese capital. As a result, Chinese debt in Nepal is also rising. According to a World Bank report, this debt grew from $0.07 billion in 2016 to $0.26 billion in 2022. While this amount is still much lower than the Chinese debt owed by other South Asian countries, Nepal is concerned about the steady increase in this figure. Strategy of China Upon close observation, it is evident that China employs a two-pronged strategy to expand its influence in South Asia. The first approach involves straining the economies of these countries by flooding the market with its products, offering loans for unnecessary mega-infrastructure projects, and leveraging its economic power to secure investments for Chinese companies. The second focuses on cultivating a pro-China civil society and promoting political parties and leaders that align with its interests. China provides generous scholarships to students, grants and funding for projects to think tanks and NGOs. It also offers travel opportunities for scholars, bureaucrats and journalists. Additionally, the country grants PhD fellowships and sends influential elites, academics and members of the Communist Party to various South Asian nations. According to reports, there has been a significant increase in training programmes organised by China for bureaucrats in Nepal. This strategic initiative creates a favourable intellectual environment for China while sidelining or diminishing the voices of critical and independent thinkers in these countries. For instance, despite the strengthening ties between China and Nepal, some analysts in Nepal are opposed to requesting debt restructuring from China due to concerns about potential backlash from Beijing. Additionally, many in Nepal employ the logic of balancing relations with India and China in the national political discourse. This approach tends to be more rhetorical than substantive. Nevertheless, the idea that Nepal must balance its relationships with both neighbours has become a widely accepted narrative. What about India? The discussion about China’s influence in Nepal cannot take place without addressing India’s role. The relationship between India and Nepal is rooted in history and is deeply connected through culture, extending beyond mere political considerations. It involves the people, their traditions and a sense of unity. Notwithstanding, there are contentious issues between the two nations, and China’s growing presence poses a challenge for New Delhi. Beijing has exploited regional tensions and strategically strengthened its foothold wherever India has encountered obstacles due to political factors. Despite India’s continued investment in the region, it struggles to maintain its strong position, particularly evident in Nepal. At times, India’s foreign policy establishment seems to take certain aspects of this relationship for granted. While it is reasonable to assume a strong cultural bond between India and Nepal, complacency could be detrimental, especially in the face of tough competition from China. India must work on reinforcing cultural ties with Nepal and engage more with civil society and the younger generation. Given Nepal’s developing status, there is an urgent need for attractive fellowships and enhanced exchange programmes. Additionally, Indian companies should consider investing in Nepal’s social sector to further strengthen these connections. Many people view China as being more influential than India in Nepal, which is concerning. A more proactive approach from India, aimed at engaging the young and articulate generation, along with a genuine effort to address political differences, could significantly enhance India’s image in the region. Fortunately, some members of Nepal’s political class, regardless of their party affiliations, remain sceptical about China’s involvement, especially in the economic sector. However, this sentiment may not last indefinitely. (The author is Associate Professor, Department of International Relations, South Asian University, New Delhi) Follow Us : Tags China Chinese debt trap India-Nepal KP Sharma Oli Related News Editorial: Nepal in China’s strategic embrace KTR urges States to learn from each other for collective national growth Opinion: India’s strategic move at BRICS Editorial: Trump’s latest blusterAnmol Bishnoi ‘wanted’ as Mumbai Police slap MCOCA on Baba Siddique’s killersNew Shenmue III Publisher Asks If You Want To See The Game On SwitchTOP RANKED ROSEN LAW FIRM Encourages ASML Holding N.V. Investors to Secure Counsel Before ...
Headed South for Winter? 5 Tips for Snowbirds About to Take FlightOttawa Fire Services are reminding residents to be cautious with dogs around icy waters after crews were called to several ice rescues in the last week. Ottawa fire spokesperson Nick Defazio says the ice rescue team was called three separate times for calls regarding dogs going through ice. The rescues included an elderly woman who fell into a pond in Stittsville on Wednesday after trying to pull her dog from the water. The woman was treated for hypothermia symptoms and transported to hospital with serious injuries, paramedics said. Crews also responded to another call in Stittsville and one in Osgoode, Defazio says. No pets suffered serious injuries. The rescues come during the first blast of winter cold this week after a warmer than usual November. Despite temperatures reaching below freezing overnight, the Canadian Red Cross recommends that ice be at least 15 centimetres for a single person or 20 centimetres for a group to stand on the ice. "If your dog does go through the ice, never go in and try to rescue them. Call 911 and try your best to get a visual signal on your pet," Defazio said. "Our ice rescue teams are highly trained, and we have quick response times. The best chance for your pet's survival is to call us." Ottawa fire recommends keeping your dog on leash near open water. Weather conditions in Ottawa are expected to stay mild early this week but will get colder going into the weekend. Shopping Trends The Shopping Trends team is independent of the journalists at CTV News. We may earn a commission when you use our links to shop. Read about us. 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RCMP arrest 1 suspect in White Bear First Nation killing, 1 still at large Saskatchewan RCMP have arrested one suspect in connection to the Dec. 3rd death of Talon Lonethunder on White Bear First Nation. The remaining suspect in the killing remains at large. Vancouver End of the Eras Tour, with Taylor Swift to take final bow in Vancouver Taylor Swift touched down on five continents during her Eras Tour, and now fans from around the world are awaiting its final curtain at BC Place in downtown Vancouver. Here’s when parking passes are required for Mount Seymour People visiting Mount Seymour Provincial Park during the peak winter season will need to book a parking spot in advance, starting on Dec. 12. Do you recognize these men? RCMP seek Metro Vancouver grandparent scam suspects Mounties in Metro Vancouver have released photos of two men alleged to have been involved in “numerous” so-called grandparent scams earlier this year, hoping the public can help identify them. 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Kelowna Study of 2023 Okanagan wildfires recommends limiting development in high-risk areas A study into the devastating wildfires that struck British Columbia's Okanagan region in 2023 has recommended that government and industry limit development in high-fire-risk areas. Kelowna, B.C., to host the Memorial Cup in the spring of 2026 The Western Hockey League's Kelowna Rockets will host the Memorial Cup in the spring of 2026, the Canadian Hockey League said Wednesday. 545 vehicles impounded in 332 days: BC Highway Patrol pleads for drivers to slow down Mounties with the BC Highway Patrol in Kelowna say they've impounded more than 545 vehicles for excessive speed and aggressive driving so far this year. That works out to more than 1.6 per day. Stay ConnectedThe new, 12-team College Football Playoff brings with it a promise to be bigger, more exciting, more lucrative. Perfect or 100% fair? Well, nobody ever believed that. The first expanded playoff bracket unveiled Sunday left a presumably deserving Alabama team on the sideline in favor of an SMU squad that finished with a better record after playing a schedule that was not as difficult. It ranked undefeated Oregon first but set up a possible rematch against Ohio State, the team that came closest to beating the Ducks this year. It treated underdog Boise State like a favorite and banged-up Georgia like a world beater at No. 2. It gave Ohio State home-field advantage against Tennessee for reasons it would take a supercomputer to figure out. It gave the sport the multiweek tournament it has longed for, but also ensured there will be plenty to grouse about between now and when the trophy is handed out on Jan. 20 after what will easily be the longest college football season in history. All of it, thankfully, will be sorted out on the field starting with first-round games on campuses Dec. 20 and 21, then over three succeeding rounds that will wind their way through traditional bowl sites. Maybe Oregon coach Dan Lanning, whose undefeated Ducks are the favorite to win it all, put it best when he offered: "Winning a national championship is not supposed to be easy.” Neither, it turns out, is figuring out who should play for it. The Big Ten will lead the way with four teams in the tournament, followed by the SEC with three and the ACC with two. The lasting memory from the inaugural bracket will involve the decision that handed the ACC that second bid. Alabama of the SEC didn't play Saturday. SMU of the ACC did. The Mustangs fell behind by three touchdowns to Clemson before coming back to tie. But they ultimately lost 34-31 on a 56-yard field goal as time expired. “We were on pins and needles,” SMU coach Rhett Lashley said. “Until we saw the name ‘SMU’ up there, we were hanging on the edge. We're really, really happy and thankful to the committee for rewarding our guys for their total body of work." The Mustangs only had two losses, compared to three for the Crimson Tide. Even though SMU's schedule wasn't nearly as tough, the committee was impressed by the way the Mustangs came back against Clemson. “We just felt, in this particular case, SMU had the nod above Alabama,” said Michigan athletic director Warde Manuel, the chairman of the selection committee. “But it’s no disrespect to Alabama’s strength of schedule. We looked at the entire body of work for both teams.” Alabama athletic director Greg Byrne was gracious, up to a point. “Disappointed with the outcome and felt we were one of the 12 best teams in the country,” he said on social media. He acknowledged — despite all of Alabama’s losses coming against conference opponents this season — that the Tide’s push to schedule more games against teams from other major conferences in order to improve its strength of schedule did not pay off this time. “That is not good for college football," Byrne said. Georgia, the SEC champion, was seeded second; Boise State, the Mountain West champion, earned the third seed; and Big 12 titlist Arizona State got the fourth seed and the fourth and final first-round bye. All will play in quarterfinals at bowl games on Dec. 31-Jan. 1. Clemson stole a bid and the 12th seed with its crazy win over SMU, the result that ultimately cost Alabama a spot in the field. The Tigers moved to No. 16 in the rankings, but got in as the fifth-best conference winner. The conference commissioners' idea to give conference champions preferable treatment in this first iteration of the 12-team playoff could be up for reconsideration after this season. The committee actually ranked Boise State, the Mountain West Champion, at No. 9 and Big 12 champion Arizona State at No. 12, but both get to skip the first round. Another CFP guideline: There’s no reseeding of teams after each round, which means no break for Oregon. The top-seeded Ducks will face the winner of Tennessee-Ohio State in the Rose Bowl. Oregon beat Ohio State 32-31 earlier this year in one of the season’s best games. No. 12 Clemson at No. 5 Texas, Dec. 21. Clemson is riding high after the SMU upset, while Texas is 0-2 against Georgia and 11-0 vs. everyone else this season. The winner faces ... Arizona State in the Peach Bowl. Huh? No. 11 SMU at No. 6 Penn State, Dec. 21. The biggest knock against the Mustangs was that they didn't play any big boys with that 60th-ranked strength of schedule. Well, now they get to. The winner faces ... Boise State in the Fiesta Bowl. Yes, SMU vs. Boise was the quarterfinal we all expected. No. 10 Indiana at No. 7 Notre Dame, Dec. 20. Hoosiers coach Curt Cignetti thought his team deserved a home game. Well, not quite but close. The winner faces ... Georgia in the Sugar Bowl. The Bulldogs got the No. 2 seed despite a throwing-arm injury to QB Carson Beck. But what else was the committee supposed to do? No. 9 Tennessee at No. 8 Ohio State , Dec. 21. The Buckeyes (losses to Oregon, Michigan) got home field over the Volunteers (losses to Arkansas, Georgia) in a matchup of programs with two of the biggest stadiums in football. The winner faces ... Oregon in the Rose Bowl. Feels like that matchup should come in the semifinals or later. Get poll alerts and updates on the AP Top 25 throughout the season. Sign up here . AP college football: https://apnews.com/hub/ap-top-25-college-football-poll and https://apnews.com/hub/college-football
Sira Thienou scores 16 points, No. 18 Ole Miss women coast to 89-24 win over Alabama StateTPG RE Finance Trust, Inc. Declares Cash Dividend on Series C Cumulative Redeemable Preferred Stock
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