Nepal is stable
China is already the number one contributor of FDI in Nepal and the thinking is that stability will lead to more investments. “Political stability means policy stability,” PM Oli assured the China-Nepal Business Forum here on Wednesday, while addressing prospective Chinese investors. Notably, Chinese President Xi congratulated Prime Minister Oli for successful elections and a new stable government. “Its [Nepal’s] internal environmental is favourable for development and prosperity,” he said.
Early Wednesday at a ceremony hosted by Nepal Embassy and attended by PM Oli and his four senior ministers, eight bilateral agreements were signed between Nepal and China’s public and private sectors. Three major signings were: Investment Board Nepal (IBN) and Huaxin Cement Company of China will develop a Rs15-billion Huaxin Narayani Cement; Butwal Power Company and Sichuan Investment Group (SCIG) will work together on Marsyandi Cascade to produce 1,000MW; Nepal Electricity Authority and China’s State Grid Corporation will construct a 159-km Kerung-Galchhi transmission line. The latter will be the first Nepal-China cross-border transmission line that will allow Nepal to export its power to China, when and if it decides so.
“Our resources aren’t enough,” Oli appealed to the China-Nepal Business Forum of investors.
“That’s why we need our friends. And that’s why we need friendly policies. Politically, we have a stable government in place. There is no labor trouble, there are no strikes. The period of political transition is over.”
Third and the most important message of the visit is clearly political. Oli and Xi spent 20 minutes one-on-one and another 45 minutes in delegation-level talks. Nepali journalists were invited to observe the discussions where the Chinese President addressed the Nepali delegates and PM Oli responded to Xi’s remarks. Their body language was warm and comfortable. Both congratulated each other over their success in recent elections. In October last year, the 19th National Congress of the Communist Party of China unanimously re-elected Xi as the party chairman. Oli invited President Xi to visit Nepal and Xi responded by saying it was very much a favourable time to visit Nepal and that he would discuss it with diplomatic authorities.
“When Prime Minister Oli visited Beijing last time during the Indian border blockade, the Chinese leadership clearly conveyed to us, that ‘you are not alone,’” Foreign Minister Gyawali said. “This time it [the level of engagement] has gone far deeper.”
President Xi speak