Abstract
This chapter assesses Nepal’s relations with China, India, and the U.S. under the pretext of increasing Sino-Indian and Sino-US rivalry. It points out that Nepal has conventionally adopted a non-alignment, neutrality, and equidistance policy toward the great power as it cannot afford entering into any kinds of power blocs or strategic alliance owing to its geo-strategic location. In practice, Nepal intends to achieve a growth-oriented development and infrastructure-driven prosperity by upgrading itself as a transit between India and China with the help of BRI, but India’s reluctance over China’s proposal of ‘China-India + Nepal’ attracted Kathmandu toward the U.S. funded Millennium Challenge Corporation (MCC).
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Notes
- 1.
Douglas, E.D. (2020). Himalaya a human history. London: The Bodley Head, pp. 7–18.
- 2.
English, Richard. (1985). Himalayan state formation and the impact of British rule in the nineteenth century. Mountain Research and Development. 5(1), pp. 61–78.
- 3.
- 4.
Tripodi, Christian. (2011). Edge of empire: the British political officer and tribal administration on the north-west frontier 1877–1947. London: Routledge.
- 5.
Douglas, E.D. (2020). Himalaya a human history. London: The Bodley Head, pp. 7–18.
- 6.
Acharya, M.R. Nepal’s National Interests, Foreign Policy and Strategic Affairs. Kathmandu: Policy Research Institute, p. 5.
- 7.
G7 summit: spending plan to rival China adopted. BBC. (2021, June 12). https://www.bbc.com/news/world-us-canada-57452158.
- 8.
US-India 2 + 2: crucial defence deal signed. BBC. (2020, October 27). https://www.bbc.com/news/world-asia-india-54655947.
- 9.
Marcus, J. ( 2021, March 17). US-China relations: beyond the ‘Cold War’ cliche. BBC. https://www.bbc.com/news/world-asia-56382793.
- 10.
Yi, W. (2021, January 2). China hopes next U.S. administration will restore normalcy to bilateral ties: FM. Xinhua Net. http://www.xinhuanet.com/english/2021-01/02/c_139636008.htm.
- 11.
Ibid.
- 12.
Ashraf, S. (2021, April 28). China-U.S. competition spills into South Asia. China-US Focus. https://www.chinausfocus.com/foreign-policy/china-us-competition-spills-into-south-asia.
- 13.
Strategic competition act. (2021). The Senate of the United States.
- 14.
Ali, S.M. (2020, December 1). The U.S.-China strategic rivalry and its implications for Pakistan. Stimson. https://www.stimson.org/2020/the-u-s-china-strategic-rivalry-and-its-implications-for-pakistan/.
- 15.
Khan, Z, Guo Changgang, Riaz Ahmad & Fang Wenhao. (2018). CPEC: A game changer in the balance of power in South Asia. China Quarterly of International Strategic Studies. 4(4), pp. 595–611.
- 16.
Thakker, A. (2021, February 11). U.S.-India cooperation in the Indo-Pacific. Center for Strategic and International Studies. https://www.csis.org/blogs/adapt-advance-refreshed-agenda-us-india-relations/us-india-cooperation-indo-pacific.
- 17.
Ibid.
- 18.
Madan, T. (2020, February). Managing China: competitive engagement with Indian characteristics. Brookings. https://www.brookings.edu/research/managing-china-competitive-engagement-with-indian-characteristics/.
- 19.
White, J T. (2021, January). After the foundational agreements: an agenda for US-India defense and security cooperation. Brookings. https://www.brookings.edu/research/after-the-foundational-agreements-an-agenda-for-us-india-defense-and-security-cooperation/.
- 20.
US-India 2 + 2: crucial defence deal signed. BBC. (2020, October 27). https://www.bbc.com/news/world-asia-india-54655947.
- 21.
Kissinger, H. (2014). World Order. New York: Penguin, p.179.
- 22.
Adhikari, D. (2020, June 11). Nepal ruling party split over US aid threat to China relations. Nikkei Asian Review. https://asia.nikkei.com/Politics/International-relations/Nepal-ruling-party-split-over-US-aid-threat-to-China-relations.
- 23.
Vater, J.J. (2020, September 8). The great game in Nepal: a Himalayan state’s search for higher ground. ISAS Working Paper. https://www.isas.nus.edu.sg/papers/the-great-game-in-nepal-a-himalayan-states-search-for-higher-ground/.
- 24.
Jha, H.B. (2020, January 14). Rivalry between US and China in Nepal delays MCC. ORF. https://www.orfonline.org/expert-speak/rivalry-between-us-and-china-in-nepal-delays-mcc-60298/.
- 25.
Wagle, Achyut. (2020, November 9). What the Biden win means for Nepal. The Kathmandu Post. https://kathmandupost.com/columns/2020/11/09/what-the-biden-win-means-to-nepal.
- 26.
Acharya, M.R. (2020). Nepal’s national interests, foreign policy and strategic affairs. Kathmandu: Policy Research Institute.
- 27.
Chinese investment should serve the interest of Nepal and not just China, US official says. The Kathmandu Post. (2019, February 26). https://kathmandupost.com/national/2019/02/26/chinese-investment-should-serve-the-interest-of-nepal-and-not-just-china-us-official-says.
- 28.
No dilemma on MCC ratification: Gyawali. The Rising Nepal. (2019, December 26). https://risingnepaldaily.com/main-news/no-dilemma-on-mcc-ratification-gyawali.
- 29.
Indo Pacific strategy report preparedness, partnership and promoting a networked region. U.S. Department of Defense. (2019, June 1). https://media.defense.gov/2019/Jul/01/2002152311/-1/-1/1/DEPARTMENT-OF-DEFENSE-INDO-PACIFIC-STRATEGY-REPORT-2019.PDF.
- 30.
A free and open and Indo-Pacific advancing a shared vision. U.S. Department of State. (2019, November 3). https://www.state.gov/a-free-and-open-indo-pacific-advancing-a-shared-vision/.
- 31.
U.S. and Nepal sign US$500 million compact. Millennium Challenge Corporation, USA. (2017, September 14). https://www.mcc.gov/news-and-events/release/release-091417-nepal-signing-event.
- 32.
MCC in Nepal, top ten facts. U.S. Embassy in Nepal. (2020, January 17). https://np.usembassy.gov/mcc-in-nepal-top-ten-facts/.
- 33.
Yanqi, H. (2020). Press conference on June 3, 2020. Embassy of the People’s Republic of China in Nepal. https://kathmandupost.com/national/2020/01/03/china-says-it-welcomes-any-foreign-economic-support-even-the-mcc-to-nepal.
- 34.
Sharma, J.R & Seddon, D. (2020, July 7). Putting the MCC in context. Nepali Times. https://www.nepalitimes.com/latest/using-the-delay-in-mcc-to-dissect-it/.
- 35.
Mihaly, E. B. (1965). Foreign aid and politics in Nepal. New York: Oxford University Press.
- 36.
Chinese investment should serve the interest of Nepal and not just China, US official says. The Kathmandu Post. (2019, February 26). https://kathmandupost.com/national/2019/02/26/chinese-investment-should-serve-the-interest-of-nepal-and-not-just-china-us-official-says.
- 37.
Stobdan, P. (2019). The great game in the Buddhist Himalayas: India and China’s quest for strategic dominance. Vintage, Penguin Random House.
- 38.
- 39.
Shahnawaz, S.S. (2011). China and South Asia: threats, strategies, cooperation and expectations. Pakistan Horizon. 64(2).
- 40.
China’s influence on conflict dynamics in South Asia. U.S. Institute of Peace. (2020, December 16). https://www.usip.org/publications/2020/12/chinas-influence-conflict-dynamics-south-asia.
- 41.
Chakma, B. (2019). The BRI and India’s neighbourhood. Strategic Analysis. 43(3).
- 42.
Rajya Sabha (2020, March 12). Unstarred question No.2118 BIMSTEC as an alternative to SAARC. Indian Ministry of External Affairs. https://www.mea.gov.in/rajyasabha.htm?dtl/32520/QUESTION+NO2118+BIMSTEC+AS+AN+ALTERNATIVE+TO+SAARC.
- 43.
Paul, T.V. (2019). When balance of power meets globalization: China, India and the small states of South Asia. Politics. 39(1).
- 44.
Sharma. G. (2019, October 13). Nepal pushes to end dependency on India with China rail, tunnel deals. Reuters. https://www.reuters.com/article/us-nepal-china-xi/nepal-pushes-to-end-dependency-on-india-with-china-rail-tunnel-deals-idUSKBN1WS0CA.
- 45.
Article 8.11 of Nepal’s foreign policy 2020. Nepal Ministry of Foreign Affairs. https://mofa.gov.np/wp-content/uploads/2020/12/Report-on-Nepals-Foreign-Affairs_MOFA_2019-2020.pdf.
- 46.
Gyawali, P. G. (2019, February 18). Remarks by the minister for foreign affairs Hon. Mr. Pradeep Kumar Gyawali at the 71st anniversary programme of Nepal council of world affairs, Nepal Ministry of Foreign Affairs. https://mofa.gov.np/remarks-by-the-minister-for-foreign-affairs-hon-mr-pradeep-kumar-gyawali-at-the-71st-anniversary-programme-of-nepal-council-of-world-affairs/.
- 47.
Ibid.
- 48.
Bhattacharjee, J.( 2018, January 23). SAARC vs BIMSTEC: the search for the ideal platform for regional cooperation. ORF. https://www.orfonline.org/research/saarc-vs-bimstec-the-search-for-the-ideal-platform-for-regional-cooperation/.
- 49.
Narayanan, R. ( 2010). The India-Pakistan dyad: a challenge to the rest or to themselves. Asian Perspective. 34(4).
- 50.
Fickling, D. (2020, June 18). The more troubling India-China conflict is economic, not military. The Print. https://theprint.in/opinion/the-more-troubling-india-china-conflict-is-economic-not-military/443890/.
- 51.
Khan, M. (2017). Growing India-US strategic cooperation. Strategic Studies. 37(4).
- 52.
Tao, L. (2017, February 3). From yam to bridge. The Kathmandu Post. https://kathmandupost.com/opinion/2017/02/03/from-yam-to-bridge.
- 53.
Sharma, B & Schultz. (2019, October 12). Xi Jinping comes to Nepal bearing investments, and India is watching. The New York Times. https://www.nytimes.com/2019/10/12/world/asia/xi-jinping-nepal-india.html.
- 54.
Ibid.
- 55.
Chhetri, P. (2018). India-China border trade through Nathu La pass: prospects and impediments. Himalayan. 38(1).
- 56.
Tao, L. (2017, February 3). From yam to bridge. The Kathmandu Post. https://kathmandupost.com/opinion/2017/02/03/from-yam-to-bridge.
- 57.
Sharma. G. (2019, October 13). Nepal pushes to end dependency on India with China rail, tunnel deals. Reuters. https://www.reuters.com/article/us-nepal-china-xi/nepal-pushes-to-end-dependency-on-india-with-china-rail-tunnel-deals-idUSKBN1WS0CA.
- 58.
Mouritz, F. (2020). Implications of the Covid-19 pandemic on China’s belt and road initiative. Connections: The Quarterly Journal. 19(2).
- 59.
Jagdishor Panday. (2018, November 11). US officials warn China’s BRI could lead to debt trap, undermine sovereignty. The Himalayan Times. https://thehimalayantimes.com/nepal/us-officials-warn-chinas-bri-could-lead-to-debt-trap-undermine-sovereignty.
- 60.
Yanqi, H. (2020). Press conference on June 3, 2020. Embassy of the People’s Republic of China in Nepal. https://kathmandupost.com/national/2020/01/03/china-says-it-welcomes-any-foreign-economic-support-even-the-mcc-to-nepal.
- 61.
Press release on Lipu Lekh. Nepal Ministry of Foreign Affairs. (2020, May 9). https://mofa.gov.np/press-release-regarding-lipu-lekh/.
- 62.
Indian army chief says Nepal objected to India’s opening of a road link via Lipulekh ‘at the behest of someone else’. The Kathmandu Post. (2020, May 15). https://kathmandupost.com/national/2020/05/15/indian-army-chief-says-nepal-objected-to-india-s-opening-of-a-road-link-via-lipulekh-at-the-behest-of-someone-else.
- 63.
Behera, A.&Mayilvaganan, M. (2021). The China-Nepal-India economic corridor: wishful thinking or regional aspiration beyond rhetoric?. The Commonwealth Journal of International Affairs. 110(2).
- 64.
Nepal, M. K (2019). As stated by former PM of Nepal Madhav Kumar Nepal in a conference “two plus one or trilateral”. Kathmandu: Nepal Alternative Research Society. https://myrepublica.nagariknetwork.com/news/79537/.
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Khadga, K.C., Bhattarai, G. (2022). Nepal Amid Sino-Indian Contestation. In: Peng, N., Ali, G., Zhang, Y. (eds) Crossing the Himalayas. Contributions to International Relations. Springer, Singapore. https://doi.org/10.1007/978-981-16-5808-2_10
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