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China-Nepal Cooperation: News & Updates

Nepal-China border reopens
- Krishna Thapa, RASUWAGADHI

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Chinese trucks carrying relief materials cross into Nepal from the Rasuwagadhi-Kerung border point, on Thursday.

Oct 16, 2015- The Rasuwagadhi-Kerung border point, which remained closed for the past six months following the April 25 earthquake, reopened on Thursday. The road leading to the border was severely damaged by the earthquake and monsoon rains.

It is one of the two major trade routes between Nepal and China, with the other being Tatopani-Khasa route.

Officials from both countries participated in the reopening of the border point. Joint Secretary at the Commerce and Supply Ministry Jib Raj Koirala, representatives of Foreign, Finance and Home ministries, chief district officer of Rasuwa, border security force personnel and customs chief of Rasuwa attended the ceremony.

Deputy General Secretary of China on Tibet affairs, Chinese embassy counsellor, officials from Chinese customs, immigration and quarantine offices were also present.

Officials of both countries insisted on operating the border points in a coordinated manner. On the occasion, China handed over half a dozen trucks laden with salt, rice and cooking oil worth Rs 16m for quake victims.

The closure of the two major Nepal-China border points since the earthquake has adversely affected bilateral trade. The Chinese side also held talks with Rasuwa’s Chief District Officer Shiva Ram Gelal and Customs chief Kedar Paneru to discuss on easing trade and removing barriers for smooth operation of the border point.

“The border point has reopened for trade,” said Paneru. “Even petroleum products can be imported through this route if an agreement is made at the higher level.”

Before bringing the border point into operation, China had cleared a huge mound of landslide debris on their side, about 10km from Rasuwagadhi.

Gelal said that the Chinese side has assured that they would coordinate with Nepal to ease export and import of goods. Deputy Superintendent of Police of the Armed Police Force Darsan Giri said that they arranged an APF unit to control revenue leakages. “We will stop smuggling of goods, provide border security and control other illegal activities,” he pledged.

The Immigration Office of Nepal has initiated works to ease cross-border movement. Officiating Immigration Chief Medani Sapkota said they distributed half a dozen of one-day passes to cross the border. Immigration chiefs of both countries said they would soon introduce four-day passes as well.

Nepal’s quarantine office has also began its operation on Thursday. As the main trade route of Tatopani-Khasa remains closed, traders said that they now plan to import goods through Rasuwagadhi.
 
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Nepal and China should work to improve the connectivity between the two countries. The connectivity should include road, railway, air, telecommunications, finance and energy.

Last month when the Nepal PM visited Beijing, the following 10 agreements and MOU were signed:-
  • Nepal to use China’s sea port facility
  • Transit transport agreement to be reviewed every 10 years
  • China to build a regional international airport in Pokhara
  • China, Nepal exploring the possibilities of signing a bilateral free trade agreement
  • China to explore the possibility of finding oil and gas reserves in Nepal
  • China to provide economic and technical support to Nepal to implement the project on Pokhara airport
  • China to distribute solar panels in Nepal’s rural areas by tapping its Climate Fund
  • China to build, manage and maintain Xiarwa Boundary River Bridge at Hilsa, Humla
  • Nepal, China to strengthen intellectual property system in both the countries
  • Nepal, China to extend cooperation and exchange information on banking regulations
All these deals were signed in the presence of Prime Minister KP Sharma Oli and Chinese Premier Li Keqiang in Beijing.

Curiously, none of the them involves railway.
 
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China opens its first combined transport service to Nepal

On the afternoon of May 11, an international freight train departed from Lanzhou, the capital city of northwestern China's Gansu province. The final destination is Kathmandu, Nepal, but rail transport will change over to road transport in Xigaze, Tibet.

The whole journey will take 10 days and includes three sections: 2,431 kilometers of rail transport from Lanzhou to Xigaze, 564 kilometers of road transport from Xigaze to Geelong Port in Nepal, and 160 kilometers of road transport from Geelong Port to Kathmandu. Altogether, the combined transport takes 35 days fewer than traditional ocean transport would.

The train has 43 cars and 86 cargo containers carrying daily necessities and home appliances, according to the deputy general of China Railway Container Corporation.

The launch of the combination service will further promote the rapid growth of related industries in China's Gansu province, Qinghai province, Tibetan Autonomous Region and South Asian regions.

http://en.people.cn/n3/2016/0512/c90000-9056831.html
 
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China opens its first combined transport service to Nepal

On the afternoon of May 11, an international freight train departed from Lanzhou, the capital city of northwestern China's Gansu province. The final destination is Kathmandu, Nepal, but rail transport will change over to road transport in Xigaze, Tibet.

The whole journey will take 10 days and includes three sections: 2,431 kilometers of rail transport from Lanzhou to Xigaze, 564 kilometers of road transport from Xigaze to Geelong Port in Nepal, and 160 kilometers of road transport from Geelong Port to Kathmandu. Altogether, the combined transport takes 35 days fewer than traditional ocean transport would.

The train has 43 cars and 86 cargo containers carrying daily necessities and home appliances, according to the deputy general of China Railway Container Corporation.

The launch of the combination service will further promote the rapid growth of related industries in China's Gansu province, Qinghai province, Tibetan Autonomous Region and South Asian regions.

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Interview: Nepal New gov't wants to further strengthen ties with China--deputy PM
2016-08-15 13:30:40

KATHMANDU, Aug. 15 (Xinhua)-- Nepalese Deputy Prime Minister Krishna Bahadur Mahara on Monday said that Nepal wants to further strengthen bilateral relationship with China in the changed political scenario in Nepal.

The deputy prime minister in charge of fiance, who is leaving for Beijing on a two-day visit on Monday afternoon as a Special Envoy of Prime Minister Pushpa Kamal Dahal, said that the government will make all efforts to enhance bilateral cooperation with China.

The visit came shortly after the formation of the new government in Nepal on Aug. 3.

"As a close and immediate neighbour, we seek China's support and goodwill in our political stability to achieve development goals. We have been enjoying age-old friendly relationship with China and want to take it to a new level," the deputy prime minister said during an exclusive interview with Xinhua News on Monday here in Kathmandu.

Talking about his visit to China, the minister said that he will brief the Chinese side regarding the latest political situation of the country following the advent of the new government on Aug. 3.

"In addition to that, I will share ongoing efforts made by the government toward effective implementation of the new Constitution," he said.

The minister expressed commitment toward effective implementation of bilateral deals on transit, connectivity, trade, commerce reached between the two governments during then Prime Minister K.P Sharma Oli's visit to Beijing.

"This government will sincerely implement the bilateral deals on transit, connectivity, trade, commerce reached between the two governments during the erstwhile government. We want to take bilateral relationship to a new high by implementing those deals," he added.

Nepal and China signed ten accords including the Transit Transport Agreement during then Prime Minister Oli's trip to Beijing this year in March.

The minister said that Nepal wants to enhance connectivity with China through China's Belt and Road Initiative, recalling that Nepal had signed a Memorandum of Understanding (MoU) with China to become a part of Silk Road Economic Belt initiative in 2014.

"We are aware of the fact that China wants to strengthen its cooperation with neighbouring and other countries through the Belt and Road Initiative. As a close neighbour Nepal wants to be benefited from such new initiatives," he said.

As a founding member of China-initiated Asian Infrastructure and Investment Bank (AIIB), Nepal wants more foreign investment on its development efforts in the days to come, he said. Nepal had formally become the founding member of the China-initiated AIIB in January.

The minister also said that Nepal is keen to see a high-level visit from China in near future.

"I will hand over invitation to the Chinese president during my visit," he said adding that such high-level visits will further strengthen the friendly ties between the two close neighbors.

The minister, who belongs to the CPN (Maoist Centre) party, was of the view that the government wants to have cordial and 'balanced relationship' with China and India.

"We want to have cordial and balanced relationship with both of our neighbouring countries China and India as per the changed context. We expect goodwill and support from our neighbours in our socio-economic development, prosperity and political stability," he said.

Mahara said that the government is in favour of inviting more foreign investments in Nepal's mega infrastructure projects.

The Nepalese minister is visiting China nearly a week after the government decided to send Special Envoys to China and India in order to strengthen ties with neighbouring countries.

Bimalendra Nidhi, another deputy prime minister who oversees home affairs in the Dahal-led government, will be travelling to India later this week as Special Envoy of the prime minister.

"Nidhiji will also seek goodwill and support from the Indian leadership for Nepal's prosperity, economic development and political stability," Mahara said.

Meanwhile, the minister said that Nepal wants support, goodwill and solidarity from both China and India in the implementation of the new Constitution promulgated in September last year.

"As we are in the phase of Constitution implementation, we expect support, goodwill and solidarity from both neighbours in the effective implementation of the Constitution," he added.
 
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Interview: Nepal New gov't wants to further strengthen ties with China--deputy PM
2016-08-15 13:30:40

KATHMANDU, Aug. 15 (Xinhua)-- Nepalese Deputy Prime Minister Krishna Bahadur Mahara on Monday said that Nepal wants to further strengthen bilateral relationship with China in the changed political scenario in Nepal.

The deputy prime minister in charge of fiance, who is leaving for Beijing on a two-day visit on Monday afternoon as a Special Envoy of Prime Minister Pushpa Kamal Dahal, said that the government will make all efforts to enhance bilateral cooperation with China.

The visit came shortly after the formation of the new government in Nepal on Aug. 3.

"As a close and immediate neighbour, we seek China's support and goodwill in our political stability to achieve development goals. We have been enjoying age-old friendly relationship with China and want to take it to a new level," the deputy prime minister said during an exclusive interview with Xinhua News on Monday here in Kathmandu.

Talking about his visit to China, the minister said that he will brief the Chinese side regarding the latest political situation of the country following the advent of the new government on Aug. 3.

"In addition to that, I will share ongoing efforts made by the government toward effective implementation of the new Constitution," he said.

The minister expressed commitment toward effective implementation of bilateral deals on transit, connectivity, trade, commerce reached between the two governments during then Prime Minister K.P Sharma Oli's visit to Beijing.

"This government will sincerely implement the bilateral deals on transit, connectivity, trade, commerce reached between the two governments during the erstwhile government. We want to take bilateral relationship to a new high by implementing those deals," he added.

Nepal and China signed ten accords including the Transit Transport Agreement during then Prime Minister Oli's trip to Beijing this year in March.

The minister said that Nepal wants to enhance connectivity with China through China's Belt and Road Initiative, recalling that Nepal had signed a Memorandum of Understanding (MoU) with China to become a part of Silk Road Economic Belt initiative in 2014.

"We are aware of the fact that China wants to strengthen its cooperation with neighbouring and other countries through the Belt and Road Initiative. As a close neighbour Nepal wants to be benefited from such new initiatives," he said.

As a founding member of China-initiated Asian Infrastructure and Investment Bank (AIIB), Nepal wants more foreign investment on its development efforts in the days to come, he said. Nepal had formally become the founding member of the China-initiated AIIB in January.

The minister also said that Nepal is keen to see a high-level visit from China in near future.

"I will hand over invitation to the Chinese president during my visit," he said adding that such high-level visits will further strengthen the friendly ties between the two close neighbors.

The minister, who belongs to the CPN (Maoist Centre) party, was of the view that the government wants to have cordial and 'balanced relationship' with China and India.

"We want to have cordial and balanced relationship with both of our neighbouring countries China and India as per the changed context. We expect goodwill and support from our neighbours in our socio-economic development, prosperity and political stability," he said.

Mahara said that the government is in favour of inviting more foreign investments in Nepal's mega infrastructure projects.

The Nepalese minister is visiting China nearly a week after the government decided to send Special Envoys to China and India in order to strengthen ties with neighbouring countries.

Bimalendra Nidhi, another deputy prime minister who oversees home affairs in the Dahal-led government, will be travelling to India later this week as Special Envoy of the prime minister.

"Nidhiji will also seek goodwill and support from the Indian leadership for Nepal's prosperity, economic development and political stability," Mahara said.

Meanwhile, the minister said that Nepal wants support, goodwill and solidarity from both China and India in the implementation of the new Constitution promulgated in September last year.

"As we are in the phase of Constitution implementation, we expect support, goodwill and solidarity from both neighbours in the effective implementation of the Constitution," he added.
 
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I thought the Indians were celebrating the deposition of Oli as a victory of their diplomacy?
 
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The minister said that Nepal wants to enhance connectivity with China through China's Belt and Road Initiative, recalling that Nepal had signed a Memorandum of Understanding (MoU) with China to become a part of Silk Road Economic Belt initiative in 2014.
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There was some talk about building a railway to connect Tibet with Nepal.

IMHO, I don't think this is economically feasible. Nepal's population is 28 million while Tibet's population is 3 million.

However, if this railway is built, it will be for geopolitical reasons not economic. Politics often trumps economics.
 
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There was some talk about building a railway to connect Tibet with Nepal.

IMHO, I don't think this is economically feasible. Nepal's population is 28 million while Tibet's population is 3 million.

However, if this railway is built, it will be for geopolitical reasons not economic. Politics often trumps economics.
 
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There was some talk about building a railway to connect Tibet with Nepal.

IMHO, I don't think this is economically feasible. Nepal's population is 28 million while Tibet's population is 3 million.

However, if this railway is built, it will be for geopolitical reasons not economic. Politics often trumps economics.
You are right
 
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Why do Nepalese borderland inhabitants like to do business in China?

2016-09-03 11:28:10 | From:China Tibet Online
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Photo shows a Nepalese passes the China-Nepal Friendship Bridge to China. In the Mt. Qomolangma Nature Reserve located on the southern slope of the Himalaya Mountain range, the Friendship Bridge crosses over the crystal-like Boqu River. Every day, cars and people pass along the bridge, tourists and traders gather on the river banks. The Nepalese people go through the red country-border-line at the middle of the bridge and arrive to the town of Zham Town,SW China's Tibet Autonomous Region.

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Photo shows a Nepalese trader checks-out his payment for goods. Zham Town is a small borderland trading town belonging to the Nyalam County of the Shigatse City in Tibet. As the only land port that is opened to the public all year round in Tibet, the Zham port workers are in charge of 82% of trading from China to Nepal as well as 93% of trading from the Tibet Autonomous Region to Nepal.

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Photo shows merchants bargains with buyers. The Purang port is located in Ngari Prefecture of Tibet, China which is a seasonal trading port. Following the opening-up to the outside world of China, especially of Tibet, Purang has particularly set up a trading market in the town.

2016931472872289815_175.jpg

Photo shows Dibu in his shop. “Tibetan people really like these perfumes, our business is pretty good.”, said a Nepalese trader Dibu, his family has been doing business at the Purang port. He said: “Four generations in my family have run the business here, we really like this place.”

2016931472872304123_175.jpg

Photo shows all kinds of Nepalese products in Dibu’s shop. Purang is located at the valley land lying on the southern slope of the Himalaya mountain range. Dibu said: “Before we used horses or donkeys to carry goods to Purang. Nowadays, the Chinese government has built good roads. Entering China’s territory, we can use cars to transfer the goods to the Purang Town comfortably.”

2016931472872375038_175.jpg

The Gyirong port is located in the Gyirong County in the Shigatse City of Tibet, just 131.5 km away from the capital city of Kathmandu of Nepal; therefore it has gained the title of “the trade route” or “the official route”. On December 1st of 2014, the Gyirong-Resuowa Bilateral port was officially opened to public.

2016931472872395041_175.jpg

Photo shows Cidan. Cidan, a Nepalese, has been doing business in Gyirong for 15 years; his store is named “Tashi Delek”, mostly selling daily living goods from Nepal and other countries. He saidhis annual revenue of business numbers to 600 thousand 700 thousand RMB.

2016931472872411357_175.jpg

Photo shows numerous people and cars go in and out of the Zham port. At the moment, the overland border-crossing from Tibet opened towards Nepal include the Zham, the Gyirong and Riwo. The Purang port opens to both Nepal and India.
 
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It all comes down to money, isn't it?

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China pledges five times more FDI in Nepal than India
August 29, 2016 13:32 PM , Republica

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KATHMANDU, Aug 29: China has surpassed India in terms of committing foreign direct investment (FDI) in Nepal.

According to the latest statistics maintained by Nepal Rastra Bank (NRB), China has outdone India in terms of committing FDI in Nepal as well as in terms of projects in Nepal.

The latest data put India on the fourth position in terms of the number of development projects pledged in Nepal and on the second position after China in terms of FDI.

Likewise, South Korea ranks second after China, the United States of America third, India fourth and Japan fifth in terms of the number of projects they have pledged to carry out in the country.

According to the statistics maintained by the NRB, China has pledged Rs 6.21 billion for 125 projects in the last fiscal year 2015/16 while India has pledged Rs 1.94 billon for 23 projects.

Likewise, the Nepal government has authorized China to invest in 125 projects, South Korea in 55 projects, the USA for 40, India 23, Japan 18, the UK 11 and other countries 69, taking the number of projects to 341 according to the NRB report of the Fiscal Year 2016/17.

The NRB report has stated that as many as 11,426 people will get employment directly from the authorized projects.

While the FDI pledges slumped by 77.5 per cent in the last fiscal year, the number of projects decreased by 7.3 percent, as compared to the same in the previous fiscal year.

In fiscal year 2015/16, the Department of Industry authorized 341 foreign-funded development projects worth Rs 15.14 billion while it had authorized 368 projects worth Rs 67.42 billion in the Fiscal Year 2014/15.

Similarly, the bonus to be taken by the companies making FDI in Nepal has also gone down, according to NRB.

The foreign companies running industries in Nepal had taken a bonus amount worth Rs 6.25 billion in the fiscal year 2015/16 while in the previous fiscal year the bonus amount was Rs 7.21 billion.

The foreign companies’ profit slumped after their financial transactions were hit by the earthquake and the Indian blockade against Nepal.

Foreign investors took bonus equivalent to Rs 6.15 billion to their respective countries. The NRB reimburses the bonus to the foreign companies based on their profit, financial details and other liabilities.

The NRB gives approval to foreign investors to take back their bonus to their countries on the recommendation of the Ministry of Industry.

In fiscal year 2014/15, the foreign companies related to hydro projects have taken bonus to their countries. They received a profit of Rs 3.15. Foreign companies have invested in the hydro projects including Khimti, Bhotekoshi.

Similarly, companies who have invested in the communication sector have taken Rs 1.69 billion as bonus.

Foreigners have invested in Nepal’s telecommunication sector including Ncell, UTL, and Smart Telecom.

According to the NRB, the companies which have invested in the industrial sector have also taken bonuses worth Rs 1.38 billion so far.

Foreign companies including Dabur Nepal, Unilever, Arati Strips, Surya Nepal have invested in Nepal’s industrial sector.

Foreigners are allowed to take back the bonus in line with the Company Act and the Foreign Investment and Technology Transfer Act, 1992.

The NRB will give approval to the mobile and Internet service providers on the recommendation of the Nepal Electricity Authority and to foreign investors investing in the industrial sector on the recommendation of the Ministry of Industry to take their profit back to their respective countries.
 
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