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Nepal ties with India are warming up. China could complicate the situation | Analysis

The flux in Nepal’s ruling communist party has added uncertainties over the country’s relations, particularly given the leverage that Beijing holds over Kathmandu’s politics and businesses.

Updated on: Nov 30, 2020, 12:36:27 IST
Hindustan Times, New Delhi | By
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Prime Minister KP Sharma Oli’s government is keen to move forward on its relationship with India and could take a positive view on a travel air bubble with India and the Pancheshwar multi-modal project after foreign secretary Harsh Vardhan Shringla’s two-day visit, people familiar with the matter said. Shringla had a 50-minute one-on-one conversation with PM Oli on November 26 that saw the two countries focusing on steps to normalise relations hit hard due to the Lipu Lekh boundary row.

Nepal's Prime Minister Khadga Prasad Sharma Oli, also known as KP Oli, has told New Delhi that Kathmandu wants to improve relations with India and wants discussions on the boundary issue to start (Reuters)
Nepal's Prime Minister Khadga Prasad Sharma Oli, also known as KP Oli, has told New Delhi that Kathmandu wants to improve relations with India and wants discussions on the boundary issue to start (Reuters)

“They are keen to move forward on the relationship and will send some positive signals in this regard. But they also want the boundary issue to be discussed,” a senior official said. As the first step to deepen bilateral cooperation, the two countries could set up the travel air bubble and revive negotiations over the Pancheshwar multi-modal project. Foreign minister Pradeep Kumar Gyawali is expected to be India in December for which the dates are being worked out.

Relations between the two neighbours had nosedived this year after Nepal opposed an 80 km-border road to Lipulekh region that is claimed by Nepal. Kathmandu responded by issuing a new map that showed Indian territories of Kalapani, Lipulekh and Limpiyadhura as part of Nepal.

Also Read: In Nepal, how domestic politics is colliding with geopolitics

For the last few months, the two countries have been taking quiet steps to restore the ties. India does not want to vacate the space in Nepal and allow China to create additional leverages in the Himalayan Republic.

But diplomats in New Delhi and Kathmandu suggest there is some concern that China, which does appear to wield influence over Nepal’s politics and economy, could hold back Kathmandu.

The continuing political flux in Nepal and the battle between the two co-chairs of Nepal Communist Party (NCP) - KP Sharma Oli and PK Dahal aka Prachanda - has added to the uncertainties around the ruling party, and created an opportunity for China to intervene.

President Xi Jinping’s Communist Party of China has been keen that the Nepal Communist Party formed in 2018 after the merger to Nepal’s two communist parties - Communist Party of Nepal (United Marxist Leninist) (CPN-UML) and Communist Party of Nepal (Maoist Centre) - does not split. Chinese ambassador Hou Yanqi has been reported to have stepped in to bridge the divide between the two factions led by PM Oli and Prachanda in the past.

Diplomats say the timing of Chinese Defence Minister General Wei Fenghe on Sunday was indicative of Beijing’s focus on Kathmandu and reinforcement of its multiple messages to PM Oli’s government and the opposition. During his day-long visit, General Wei held meetings with PM Oli, President Bidya Devi Bhandari and Nepal Army Chief Purna Chandra Thapa before leaving for Pakistan in the evening.

PM Oli is believed to have suggested to ambassador Hou Yanqi at their meeting earlier this month that he is capable of handling challenges within his party without any assistance from other countries. But it is unclear if he can stand his ground.

Beijing wants the Nepalese Communist movement to remain united so that the country remains antagonistic towards India. The other option in play is to squeeze PM Oli, who wants a rapprochement with India, out of the party and the government.

  • Shishir Gupta
    ABOUT THE AUTHOR
    Shishir Gupta

    Shishir Gupta is Executive Editor at Hindustan Times and one of India's top journalists covering national security, strategic affairs, foreign policy and geopolitics. Over the past three decades, he has extensively reported on India's military, diplomatic and security landscape, covering every major conflict and national security challenge, from the 1999 Kargil War and the 2020 East Ladakh standoff to Operation Sindoor in 2025. He has also covered major terror attacks, including the IC-814 hijacking, the 26/11 Mumbai attacks and the 2025 Pahalgam terror strike, along with numerous Pakistan-backed terrorist incidents in the Kashmir Valley and across India. He has reported on national and state elections for more than three decades. A recognised authority on strategic affairs, Gupta has covered India's nuclear programme since the Pokhran-II (Shakti series) tests in May 1998 and has written extensively on global nuclear issues, Indian diplomacy and the country's expanding global outreach. He has also reported widely on international conflicts and terrorism, with a special focus on the Indian subcontinent. Gupta has interviewed Prime Minister Narendra Modi more than four times, including Modi's first interview with the print media after becoming Prime Minister in May 2014. His other interviews include three with the Dalai Lama, as well as conversations with Benjamin Netanyahu, Amit Shah, Yogi Adityanath, S. Jaishankar, Nirmala Sitharaman and Piyush Goyal. He is the author of Indian Mujahideen: The Enemy Within (Hachette, 2011) and Himalayan Face-off: Chinese Assertion and Indian Riposte (Hachette, 2014). He was awarded the Chevening-Wolfson Joint Scholarship at Wolfson College, University of Cambridge, UK, in 1998 and participated in the International Visitor Leadership Program (IVLP) of the US State Department in 2006. He received the Ben Gurion Prize from Israel in 2011 and the K. Subrahmanyam Prize for Strategic Studies in 2015 from the Manohar Parrikar Institute for Defence Studies and Analyses (MP-IDSA). Since 2024, he has hosted Point Blank, Hindustan Times' weekly YouTube show on global geopolitics.Read More

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