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Nepal Courts India and China as It Pushes Forward China-backed Connectivity Plans

Khanal reassured Beijing on the one‑China policy and sovereignty, with a Chinese feasibility study for a NepalChina railway expected by the end of June.

Overview

  • Nepal’s foreign minister, Shisir Khanal, completed consecutive visits to New Delhi and Beijing in mid-June to signal equal priority for ties with both neighbours.
  • In Beijing Khanal held in-depth talks with Wang Yi, Wang Huning and Liu Haixing that covered connectivity, border management, trade and technology transfer.
  • Khanal publicly reaffirmed Nepal’s commitment to the one‑China policy and told Chinese leaders Kathmandu will not allow Nepali territory to be used against China’s interests.
  • Chinese officials raised concerns about Western development programs in Nepal, with Nepalese reports noting the US $500 million MCC compact was discussed and China urging development cooperation that respects sovereignty.
  • Kathmandu is prioritising infrastructure cooperation with China, inviting Chinese investment and expecting a Chinese-completed feasibility study for a cross‑border railway by the end of June to guide projects such as transmission lines, rail and freight facilities.