Explained: China-Nepal's ambitious Trans-Himalayan network

China has said it will finance a feasibility study of a China-Nepal cross-border railway link and send experts to Nepal to conduct surveys this year. The two countries have also agreed to build the Trans-Himalayan Multi-Dimensional Connectivity Network, part of the Belt and Road Initiative (BRI), according to the Chinese foreign ministry.

The announcement came on Thursday (August 11) at a media briefing in Beijing after the two countries’ foreign ministers met in Qingdao on Wednesday.

China’s State Councillor and Foreign Minister Wang Yi held talks with the visiting Nepali Foreign Minister Narayan Khadka.

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China has pledged Nepalese Rupees 15 billion (800 million RMB (Renminbi), $118 million) for various projects in Nepal.

The Trans-Himalayan Multi-Dimensional Connectivity Network involves the building of railways and communication networks.

Wang Wenbin, the Chinese foreign ministry spokesperson, said, “During the talks of the Chinese and Nepali foreign ministers, the two sides agreed to build the Trans-Himalayan Multi-Dimensional Connectivity Network. State Councillor and Foreign Minister Wang Yi announced that Chinese aid for Nepal will be used to support the feasibility study of the China-Nepal cross-border railway, and China will send experts to Nepal to conduct on-the-ground survey within this year.”

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The two sides agreed to speed up the Kathmandu Ring Road Improvement Project (Phase II) at a faster pace and advance electric power interconnection projects. The two sides will strengthen the Electric Power Cooperation Plan, he said.

They have also agreed to negotiate and conclude an implementation plan for Belt and Road cooperation as soon as possible, and will convene a meeting of the Joint Commission on Economy and Trade and a meeting of the Working Group on Facilitating Trade within this year.

According to the spokesperson, Wang Yi said, “China and Nepal, linked by mountains and rivers, have enjoyed ever-lasting friendship. No matter how the international and regional situations changed, China and Nepal have always firmly supported each other on issues involving core interests and always stood shoulder to shoulder in the face of tests and challenges. It’s China’s consistent position that all countries, big or small, rich or poor, strong or weak, are equal.

“China will continue to firmly support Nepal’s efforts to safeguard its sovereignty, independence and territorial integrity, pursue a development path in line with its national conditions, improve Nepali people’s lives, and revitalize the nation. China is ready to work with Nepal to implement the fruitful outcomes of President Xi Jinping’s historic visit to Nepal (in 2019), advance high-quality Belt and Road cooperation, carry forward the ever-lasting friendship, and open up new prospects for the development of bilateral relations.”

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The spokesperson defended the loans provided by China through the Belt and Road Initiative.

“I want to stress that for a long time, China has actively supported the economic development of fellow developing countries through high-quality Belt and Road cooperation. It has brought tangible benefits to the locals and been widely welcomed and highly appreciated by developing countries.

“The loans provided by China to developing countries like Bangladesh and Sri Lanka take up a far smaller share than those of the international capital market and multilateral financial institutions led by Western countries. And what we provide to these countries are mainly concessional loans with low interest rates and long terms of maturity, which not only would not add to their debt burden, but also play a positive role in improving their infrastructure and people’s livelihood,” he said.

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