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Kathmandu Monday May 14, 2001 Jestha 01, 2058.
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Important visit
Chinese Premier Zhu Rongji arrives here today on a three-day
official visit as part of a swing through the region. Premier Zhu Ronji’s visit is
important on several counts which overlap to some extent. First, there is the overall
scenario of growing and deepening ties between the two countries as exemplified by the
state visit paid to China by Their Majesties the King and Queen earlier this year.
Secondly, Nepal-China bilateral trade has taken on some urgency in view of China’s
prospective entry into the World TradeOrganisation and Nepal’s increasing trade
deficit with China. Against this background Nepal has been looking forward to preferential
treatment in its trade with Tibet. The China trade is likely to gain in importance as
China turns more and more towards development in its south west including construction of
a broad gauze rail link between Lhasa and Gormo. On a related front, China has agreed in
principle to open two more border points, in Kimathanka and Mustang. Border traffic is
imporant not just for trade.Nepal has to send foodgrain to its remoter districts through
Tibet, on an adhoc basis. These issues are expected to figure during the Zhu Rongji visit.
The Chinese Premier is also likely to see the signing of six
different agreements including a letter of exchange on building the
Syabrubesi-Rasuwagadi-Kerung road. The others relate to agriculture, a polytechnical
institute, a hospital for civil servants, avoidance of double taxation and fiscal evasion,
and economic and technological cooperation. Some of these projects are also significant
for the implications they have for other aspects of Nepal-China relations. One such aspect
is security in a changing context, including the question of Nepal’s own
deteriorating internal stability. China has voiced concern over this matter and it could
well figure in talks during the Chinese Premier’s visit, with the Nepalese side no
doubt seeking Chinese assurances in view of the growing Maoist threat. Nepal is also
worried about the nuclear arms proliferation in the region. China for its part is always
concerned about free Tibet activity in Nepal, and the Chinese Premier might seek
reassurances about Nepalese territory not being used for anti-China activity. Any
assurances that Nepal can offer will be music to Chinese ears given the changing regional
configuration. This has to do with the perceived encirclement of China, the emerging
superpower, by the United States, in alliance with countries in China’s periphery.
The Bush Administration’s proposed nuclear defence shield fits in with just such a
grand design.
Last and not lest is Nepal’s own policy of equilibrium
between its two giant neighbours. This policy is expected to be further bolstered by the
new road link mentioned above, something regarding which the Chinese have in effect said
no third country need be too exercised about. This road and the emergence of China as an
economic powerhouse and global player will undoubtedly further bolster Nepal’s
traditional policy. These will greatly bolster Nepal’s latitude in making independent
policy decisions without seeming to be pliant towards its northern or southern neighbour.
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