Forum (Spotlight Weekly)

Nepal-China Economic Relations

By Narendra Raj Pandey

I deem it a privilege to be here today to attend the 7th Meeting of the Nepal-China Non-Governmental Cooperation Forum for the first time. The Forum ever since its inception has been playing a pivotal role as a platform for jointly identifying ways for deepening Nepal-China cooperation. Its activities are viewed with keen interest, both in Nepal and China, with hopes and promises and a lot of expectations. The fact that it has been meeting regularly as per schedule is indeed a tribute to the sense of responsibility of the FNCCI and ACFIC's leadership.

The present meeting of the Forum is taking place between two important visits from China -- last month's visit of Vice Foreign Minister Wang Yi under the bilateral consultation mechanism and next month's visit of Chairman Jia Qinglin of the Chinese People's Political Consultative Conference, which will be the first high level visit from China after its new leadership assumed office a year ago.

The year 1996 has been a remarkable year for Nepal-China relations. The exchange of visits from both sides at the level of the Heads of State took place this year, besides a Prime Ministerial visit from Nepal. President Jiang Zemin during his Nepal visit in December 1996 set good-neighborly partnership framework as the guiding principles of our bilateral relationships aimed at handing them down from generation to generation. And, that very year also saw the birth of this Forum.

Nepal-China ties have always remained excellent. Our relations are marked by mutual respect, mutual appreciation and mutual trust. The leaders of both our countries have worked hard with their wisdom and vision. His Majesty King Gyanendra Bir Bikram Shah Dev, continuing the tradition of His Majesty's late father and late brother, developed close rapport with the leaders of China, including President Hu Jintao and Chairman Jiang Zemin in the course of the State visit last year.

This happy state of relations nurtured by the sweat and toil of our leaders is our precious asset. We have to be able to build on it injecting economic content by promoting trade, investment; tourism and other economic activities. There is profound goodwill towards Nepal in China. There is also the desire to help and curiosity on how to go about it. The Royal Nepalese Embassy in Beijing receives a number of inquiries and proposals, to which we attend to the best of our abilities. We are ever ready to assist in whatever
way we can in facilitating the endeavors of the Forum at all times.

No organization other than this Forum is perhaps more equipped and qualified, more representative and resourceful to take the lead in this endeavor. We have over the years seen the initiatives taken under the auspices of the Forum. True, there is much to be desired by way of tangible gains. But, equally true is the fact that there have been hurdles that have hindered progress. Here I wish to join Ambassador Sun Heping in his suggestion that the two governments strengthen their support to the Forum and encourage it to play positive role in promoting bilateral trade and economic cooperation.

The establishment of this Forum was a milestone in the annals of the two countries' relationship. And in its own short history, the signing of the Memorandum of Understanding between the FNCCI and ACFIC in the gracious presence of His Majesty the King in Shanghai last year was another landmark. The MOU while reaffirming the two Organizations' resolve to realize the objectives of the Forum provided, among others, for the formation of Task Force to make practical recommendations for promotion of economic links in a number of areas. I am glad to learn that the two organizations are working on it.

Tourism is an area, which in recent months has registered some encouraging signs. Two years ago, China designated Nepal in the list of Approved Tourist Destination. Earlier this year, Nepal and China signed a new Air Services Agreement and a Memorandum of Understanding. Nepal on her part waived visa fee for Chinese nationals visiting Nepal, besides making RMB convertible.

It is indeed fitting that the present meeting has chosen tourism as its theme. It is said that presently, some sixteen million Chinese go abroad every year and is projected to be the world's fourth largest tourist generating market by 2020. China has 150 million people espousing Buddhism, and the number is said to be increasing. This together with His Majesty's Government's recent policy to focus on regional tourism augurs well for a quantum rise in the flow of Chinese tourists to the birthplace of Buddha. Considering the potential, the number of Chinese tourists visiting Nepal now is too meager to mention. In ACFIC with its vast network of over 1.6 million members we have a friend who can greatly help us in this regard.

Next year when the Forum meets in China for its 8th meeting, we will have entered the 50th year of the establishment of diplomatic relations between us. It will be appropriate that the present meeting taking note of this historical event and even deliberate on how the Forum can contribute towards making the Golden Jubilee of Nepal-China relations a fruitful event.

Promoting non-governmental trade ties and economic cooperation, deepening the traditional friendship between the two peoples and facilitating the development of good-neighborly and friendly relations are the purposes for which the Forum has been established. It seems to be that furtherance of the non-economic component of the Forum's goals perhaps needs to be more actively pursued in its activities.

Before closing, allow me to mention that the Forum is well aware of the issues in Nepal-China economic relations that need to be addressed. They have been discussed in its previous meetings. On the basis of the Forum's experience over the past seven years, it is hoped that the present meeting will come up with practical measures for the realization of its cherished goals.

(Pandey is the Royal Nepalese Ambassador to China. He presented this statement two weeks ago at the 7th meeting of the Nepal-China Non Governmental Cooperation Forum)