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Nepal trusts India much less than China

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Like Pakistan, Sri Lanka, and Bangladesh, Nepal is also, in recent years, tilted towards China, especially for economic, rather than military or even strategic reasons although all of them have made any collative effort on any regional or international issues.

Nepal, the landlocked country, which is surrounded on three sides by India and China on one side over the Himalayas, depends on neighbors for its prosperity and also diversifying the sources of key supplies was very important for the successful conduct of its policies. Nepal is trying to find a way to ensure manageable risk in terms of resources it gets from other countries.

Extra pressure from New Delhi forced Nepal to move towards China.

Constantly tormented by the necessity of pursuing a neutral policy to effectively balancing between its immediate but antagonistic neighbors China and India, Nepal has been striving to figure out how it is related at multiple levels to both countries.

China and as well as Indian exerts tremendous influence on Nepal to toe their lines however, Katmandu is keen to be a partner of Beijing. While China is a UN veto power and world economic power, India is an emerging economy with its own limitations.

However, Hinduism playing a mediating factor, India has extensive political and economic influence over Nepal and thus far it provides much of Nepal’s supplies. In 2015, India withheld supplies, especially fuel, to the country after the devastating earthquake by blocking traffic because of a political dispute. Here Beijing stepped in and supplied fuel along the mountainous routes and became a trusted partner.

Rise of leftism

A Left parties’ alliance formed a new government in Nepal after a landslide victory, seen as a triumph of China over India regarding influence in Kathmandu, with pro-Chinese nationalist leader K.P. Sharma Oli expected to be prime minister. The alliance has an ideological affinity with communist China. Its top leaders, Oli and Pushpa Kamal Dahal, both ex-prime ministers, also have a personal rapport with top Chinese and party officials.

Leaders of the coalition in Katmandu said the new government will launch five or six megaprojects aimed at spurring development and job growth, including revisiting the Chinese company-funded Budhi Gandaki dam project, which was cancelled on the eve of the election.

After the elections, Oli visited a border point with Tibet where a trans-Himalayan railway project is under review, further indicating future collaboration with China. Oli pledged to bring in Chinese investment for key infrastructure projects, and to return a US$2.5 billion hydropower project to China’s Gezhouba Group, after the current government scrapped the deal citing contract “irregularities”.

While Chinese communist ideology seems to be close to Nepalese political and intellectual classes, India under BJP government tries to  use Hindu religion to exert  more influence the on the Nepalese mindset than China.

Nepal’s newly elected Left Alliance is not doing Beijing’s bidding, but seeks to balance relations between China and India to promote economic growth and political stability. The sweeping victory of the Communist CPN-UML and Maoist Party alliance in Nepal’s election this month has raised alarm bells. The primary concern in the international press seems to be that a communist government will allow China a greater role in a region India sees as its backyard.

Earlier, the centrist Nepali Congress-led incumbent government played a role in slowing Beijing’s economic advances in Nepal. Not one project has yet been pursued under the “Belt and Road Initiative”, eight months since a framework agreement. Breaking with the tradition of visiting India first upon taking office, Dahal chose China as his first port of call in August 2008. Oli signed a slew of deals, including on transport and transit, when he arrived in Beijing as Nepal’s leader in March 2016. These treaties not only ended Nepal’s sole dependency on India for trade but also diversified the Nepalese market for petroleum imports, crucial for a landlocked nation that has faced three economic blockades by India.

Once considered close to New Delhi, Oli became vocal against India when it pressured Nepal over its constitution in September 2015, then imposed a five-month blockade, and tried to bar Oli from becoming prime minister. But, he is not against seeking Indian investment for development. No government in Nepal can ignore one neighbour at the cost of another. Nor can it afford sole dependency on either.

With China surpassing India on the list of Nepal’s largest donors and investors, India’s unease has deepened. The problem is India still sees Nepal as its “backyard”; it welcomes Chinese investment but expresses deep suspicions when it comes to its neighborhood.

There is speculation, mostly from Indian sources, that China has been pulling the levers behind the scenes to help the two major left parties come together. Western media have repeated the claim, with the alliance depicted as a pro-China force and Chinese activities held responsible for India’s diminishing influence in Nepal.

If India’s traditional dominance in Nepal has waned, it is more because of India’s reckless diplomacy and it new hate politics. After India imposed an effective blockade against Nepal in 2015-16 for refusing to write a constitution on its terms, Nepal was cut off from fuel and essential supplies for more than five months. Nepal has since looked north for development and diplomatic balance and China readily obliged its red neighbor.

India may not accept developments in Nepal as the aspirations of a landlocked, sovereign neighbour to diversify its trade, transport and transit dependencies.  India’s clout would not count greatly if it continues to try to reverse the logical trend but on the contrary would only help steer China’s speedy footprints in Nepal.

But India must honour its earlier infrastructure commitments to Nepal, while admitting that China is a reality, not a choice, for Kathmandu.

Logic

It is geographic logic that geared Nepal towards the south but economic and geopolitical logic means it now also engages China. There is now a consensus across the political spectrum on the need to end Nepal’s exclusive southern orientation and develop better trade and transport links with China.

Study of China and its language are becoming popular in Nepal. The students of Nepal are also taught about contemporary China, including the government’s claim that it is the home of the “four great new inventions”, including shared bicycles and high-speed railways. The number of Chinese tourists travelling to Nepal is also swelling, rising 20 per cent in 2016 to 104,000, according to figures from the Nepal Tourism Board. The sharp rise has coincided with an increase in the number of Chinese businesses in Kathmandu, including hotels and restaurants in the so-called Chinatown in the city’s Thamel district.

Since opening in 2015, Nepal has organised dozens of events promoting Chinese culture. In fact, the Classrooms have sparked controversy in some countries because of their links to the Chinese government, and the perception that they support Beijing’s political objectives and fail to tackle sensitive topics. There are more than 1,000 such classrooms in primary and secondary schools around the world.

While China’s cultural clout in Nepal lags far behind that of India – with which Nepal shares a 1,700km open border – opportunities for Beijing to shift that balance were given a huge boost when Nepal’s Communist alliance, which is seen as friendlier to China, secured a landslide election victory.

Totalitarian China has restrictions placed on religions, especially Islam and controls over the internet and blocks many websites which might carry content that is religious and not exactly critical of the ruling Communist Party – including Google and Facebook – but also religious contents.

Political economy

The left win in Nepal was good news for China, given Nepal’s strategic location as a buffer with India and proximity to Tibet, an autonomous region of China with lingering tensions over its sovereignty.

Nepal’s communists have been adherents of the market economy since the establishment of democracy in 1990 and many leaders have close relationships with India. Most domestic forces have sought help from India and China to gain political leverage and both countries have attempted to influence political processes. Their involvement is as effective as local dynamics allow. No country wields absolute power over politics in Nepal.

China is Nepal’s largest foreign investor, and in the past financial year alone has invested 8.36 billion Nepalese rupees (US$81.89 million) in the country, an increase of almost 35 per cent from the year before, according to Nepal’s Department of Industry.

More than US$80 million of investment are helping Beijing to win hearts and minds in its tiny, but perfectly placed neighbour Nepal. Much to the annoyance of New Delhi, Beijing has poured huge sums of money into infrastructure projects in Nepal – a landlocked nation with China to its north and India to its south – under its trade and infrastructure development plan known as the “Belt and Road Initiative”.

The impact of Chinese investment in Nepal is visible in its roads and motorways, hydroelectric projects and railways, as well as the rebuilding projects launched after the devastating earthquake of 2015 that left more than 9,000 people dead. At the entrance to a project, partly funded by Beijing, to restore a tower in front of the old royal palace in Durbar Square, are the flags of both Nepal and China.

China has been making strenuous efforts to increase trade with Nepal. At present, China-Nepal relations are developing at the fastest pace we’ve seen,” said Yu Hong, Chinese ambassador to Nepal. Nepal’s closeness to China, expected to deepen under its New Leftist government, is just a sovereign nation’s wish to secure its interests and India should accept it as such.

In fact, the regional superpower China helps Nepal overcome it’s over dependence on India by providing those resources that come from India to the former kingdom of Himalayas. Nepal ended its long dependency on India for internet access recently by opening a fibre optic link to China. Nepal’s information minister Mohan Bahadur Basnet inaugurated the link across the Himalayas at a ceremony in the capital, Kathmandu. Previously, all internet connections in the landlocked country came via three access points in its only other neighbour, India through the cities of Bhairahawa, Biratnagar and Birgunj in southern Nepal.

The new internet line provided by China Telecom Global extends from Kathmandu to the border point Rasuwagadhi into the Tibet region. It comes after a coalition of two communist parties that are considered pro-China won Nepal’s election last month. The Nepal line is connected via Hong Kong bandwidth, which is not restricted by the infamous “Great Firewall”. The link was scheduled to be up and running by the middle of last year but it was delayed due to the difficulties of working at high altitudes above 4,000 metres.

Work on a communications link to China was finished in December 2014, but it was completely destroyed in a devastating earthquake in April 2015. A land transport route through the Tatopani border point to China is still closed.

Chinese influence can be seen across Nepal, Beijing still has some way to go, especially in the area of people-to-people relations, which are still not sufficient. Cultural relations and the people-to-people relations are the vehicle for strengthening bilateral relations

This visible presence is a concern for India, which regards China as a strategic competitor and views the influx of Chinese money with a geopolitical edge. There are also perennial concerns over China’s soft power regarding sovereignty

Helplessness

Any country would like to have full and complete sovereignty and freedom to decide its course without any pressure or force from any other big nation. Nepal feels for that ambiguity and inability. .

Nepal is pursuing a long history of trade and cultural connection with China that was broken after the British incursion. What the India/West axis sees as Nepal being breaking away from its fold, but Nepal sees as a much-needed rebalancing.

Nepalis strongly desire to break free from the shackles of political and economic domination from both Indi and China. They have seen Asian countries transform themselves in a matter of decades and are eager for similar change. They have seen the rise of China and how the Chinese have lifted millions out of poverty. They have seen in their own country how almost 70 years of Western development aid has done little in comparison.

There is a great disillusionment against what is widely perceived as the proclivity of the Indians and Westerners to get mired in domestic politics and social engineering Nepal is not a “security instrument” to contain China, nor a battleground in the new great game. It is easy to see why the Chinese model, with its strictly economic terms of engagement, is preferable to many, even with concerns about “debt entrapment” among countries dealing with China.

Anyone in China’s neighborhood is going to be aware of the gravity of China’s pull and the amount of influence it could potentially wield. But many in Nepal appear unconcerned, focusing instead on China’s massive economic development and the spillover benefits it could have for their country. 10 years down the road, Nepal’s economy will have largely benefited because of the Chinese economy.

Obviously Nepal will benefit from the growing Chinese economy and the Chinese protection would ward off any threats from India.

South Asia

Pakistan Securing Its Maritime Interest and CPEC

Qura tul ain Hafeez

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The IOR is a major sea route that unites the Middle East, Africa, and East Asia with Europe and America. The excessive economic growth of littoral states of Indian Ocean obliges them to protect their energy needs and interests in order to endure their purchasing power. This has great security implications for the sea line of communication of the littoral states of IOR like Pakistan.

Continuing to Pakistan’s interests in IOR the China-Pakistan Economic Corridor has great potential to transmute Pakistan into a central trade platform, which would undeniably gushed the enemies, particularly India, to halt it. The development of Gwadar sea-ports as part of BRI in general  and that of CPEC in particular has amplified India’s concerns’ and aimed for more sophisticated and advanced naval build-up. Furthermore, India perceives the Gawadar port (that is considered as crown jewel of CPEC) as a hazard to its contesting interests in Central Asia countries.  The reason being, India can access Afghanistan, Iran and Central Asian Republics (CARs) only through Cahabahar by passing Pakistan and Gawadar  a deep water sea port that is easily accessible to these land locked states then Chahabahr. A couple of days back on 24th December 2018 India has formally over taken the operational control of Iran’s Cahabahar port – only (0 Km away from Gawadar port. India’s aspirations to become blue water navy in the IOR raise serious concerns among Pakistan’s maritime security. CPEC would lead toward increased maritime politics and contestations not only between Pakistan and India but would also involve China and US.

In such turbulent circumstances Pakistan is required to prepare its sea based defense to secure its sea lines.   Islamabad needs to carefully evaluate its options and develop its strategic response accordingly, involving but not limited to continuous development of its naval capability and an even closer maritime cooperation with China. In view of the prevailing power dynamics in Indian Ocean Pakistan Navyin order to secure its interest in IOR inked a contract with China’s State Shipbuilding Corporation (CSSC)in June 2018 for two, Type 054AP frigates. The agreement is an extension of a previously signed agreement in 2017. Recently on December 19, 2018 steel-cutting ceremony for the second Type 054A frigate for the Pakistan Navy was held at the Hudong-Zhonghua shipyard in Shanghai. The type 054 AP warship frigates will be equipped with modern detection-state of art sensor and Guided Missiles weapon systems; capable of anti-ship, anti-submarine and air-defense operations. According to the report of China Daily report added that the “Type 054A is the best frigate in service with the PLAN”.

It is pertinent to mention here that maritime security is linked with the Economic security and vice versa. Gawader port is one of the most important projects of the CPEC where Pakistan and China are very hopeful that in future this shipping port will generate the revenue for Pakistan’s economy.  There is a big chunk of fishery industry through which Pakistan can earn a lot. It will stimulate business and trade activities at state level and across the region.  The 054 AP frigates ““Will be one of the largest and most technologically advanced platforms of the Pakistani Navy and strengthen the country’s capability to respond to future challenges, maintain peace and stability and the balance of power in the Indian Ocean region” a report on 2nd January 2019 released by  Chinese state owned media said.

In some, to deal with all these existing defies Pakistan Navy (PN) has espoused to a multi divided line of action for safeguarding the port in more effective manners. It conducts security patrolling h and coastal exercises from time to time. Furthermore, previously in 2013 it has inaugurated its Joint Maritime Information Coordination Center (JMICC) in Karachi to provide with an effective mechanism of Maritime Domain Awareness (MDA).  After receiving these 054 AP frigates warship Pakistan will definitely in far more better position to counter India’s vested interests in Indian Ocean region. It will also help secure the Gwadar port which is the chief component of Pakistan maritime trade activities. China has always been an al weather strategic partner of Pakistan. Although India always tries to propagate that CPEC is military agreement instead of an economic one however, securing the economic interests with an advanced mechanism does not mean at all that it’s planning something militarily. Pakistan has always adopted a defensive policy and it is the right of every sovereign state to secure its interests even if they are economic as there is no morality in international politics, still CPEC is an economic project which welcomes every state of the region for economic cooperation  even if it is India as well.

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South Asia

2018 was the deadliest year in the history of Kashmir

Irfan Khan

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Kashmir is natural paradise and gorgeous valley located between Pakistan, India, Afghanistan, China and with a small strip of 27 miles with Tajikistan and Kyrgyzstan. But it is still a disputed region since partition of United India into India and Pakistan (also Bangladesh in 1971) in 1947.

The history of the freedom of Kashmir dates to 1931 when the people, both Hindus and Muslims, initiated a freedom movement against the then Maharaja (ruler) to have their own indigenous rule. The resentment of the people led to the ‘Quit Kashmir’ campaign against the Maharaja in 1946. Faced with the insurgency of his people, the Maharaja fled the capital, Srinagar, on October 25, 1947 and arranged that India send its army to help him crush the rebellion. India, coveting the territory, set the condition that Maharaja must sign an ‘Instrument of Accession’ to India. At the same time, India had to attach another condition that accession was made subject to ‘reference to the people.’ On India’s showing, therefore, the accession has a provisional character.

Then India brought the dispute to the United Nations where the Security Council discussed the question exhaustively from January to April 1948. Then both India and Pakistan and approved by the international community that the dispute over the status of Jammu and Kashmir can be settled only in accordance with the will of the people which can be ascertained through the democratic method of a free and impartial Kashmiri citizens vote.

The people of Kashmir, despite of being injured since long could not lost their hope. They believe in United Nation(UN), assuming it will advocate choice of freedom for them. During the July-August 2018, people from entire Srinagar and other towns, were protesting government of India’s violation of Article 35-A of Indian’s constitution. 35-A, assure special rights to the state of Jammu and Kashmir.

Whenever, there is peaceful demonstration from them, then they must suffer basic human rights violation, fear and state of starvation as response of Indian government. In 2018, 111 civilians are killed which is double to the previous year recorded 40 killing by the Indian forces. India has some 500,000 troops deployed in Kashmir. Popular unrest has been rising since 2016 when a charismatic young Kashmiri leader, Burhan Wani, was shot dead by Indian forces.

Pakistan always has been bolstering the way of peaceful talk with India over the issue. Last year, in October, Prime Minister Imran Khan, repeated Pakistan’s stance that the solution to the region’s dispute laid in dialogue. He said,”It is time India realised that it must move to resolve the Kashmir dispute through dialogue in accordance with the UN SC resolutions and the wishes of the Kashmiri people”.

Kashmiri leader Mirwaiz Umar Farooq, in response to PM Khan said we welcomed “Pakistan’s concern” but called for Pakistan to “do much more” to “put an end to the appalling grind of repression and human rights abuse that Kashmiris are suffering at the hands of Indian state.

Happily, UN has issued human right report on Kashmir in June 2018. The report of 49 pages strongly emphasis on human right violation and abuses and delivering justice for all Kashmiris. UN High Commissioner for Human Rights Zeid Ra’ad Al Hussein remarked “The political dimensions of the dispute between India and Pakistan have long been centre-stage, but this is not a conflict frozen in time. It is a conflict that has robbed millions of their basic human rights and continues to this day to inflict untold suffering. Therefore, any resolution of the political situation in Kashmir must entail a commitment to end the cycles of violence and ensure accountability for past and current violations and abuses by all parties and provide redress for victims”.

2018 was the deadliest year in the history of Kashmir. Hope so, Pakistan and India sandwiched by UN would resolve the issue based on Kashmir people’s choice of freedom so that human violation could be ceased.

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South Asia

CPSEC: The Saudi addition to CPEC

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CPEC has been a cornerstone of Pakistan’s long-term macroeconomic policy, and no matter who has been in power, the resolve to continue it further has been steadfast. Pakistan has realized its geopolitical advantage and has focused on constructing trade, energy and transportation corridors throughout its length. China and Pakistan in 2015, had agreed on partnering for the development of an economic corridor which would connect China’s western front with that of the Indus Belt and eventually with the Arabian Sea. The plan saw $ 62 Billion being committed to the execution of the project, building roads, rails, and power projects all along the length of Pakistan.   Contrary to popular belief, the economic corridor actually benefits both countries. China needs alternate routes for uninterrupted trade and energy supply, while Pakistan direly needed infrastructure and power sector development.

Saudi Involvement

At the recent Investment Conference titled “Davos in the Desert”, Pakistan’s newly elected Prime Minister had pitched the investment opportunities in Pakistan. Saudi Arabia now wants to be a partner in the CPEC project. The investment revolves around the establishment of an “Oil City” in Gawadar. Adviser to the Pakistani Prime Minister had said Saudi that the investment in the huge Oil City project in Gwadar would be $22 billion.

Recently after the twitter spat between the US and Saudi Arabia, the relations have been strained between the two long-term allies. Saudi Arabia, a longstanding US ally in the region is looking to diversify its relations with other nations to reduce its American dependence. This is why Saudi Arabia wants to partner into the CPEC project.

What benefits does Saudi Arabia have with the joining in the project? Saudi Arabia is still the largest supplier of crude oil. It has been looking to secure its oil exports and look for stable markets for its oil export. China is the largest importer of crude oil in the world, accounting for 18.6% of the total global import. The US, on the other hand, is the second largest importer of crude oil, though it also has a huge domestic production which accounts for 40% of its total domestic use. China clearly has the demand and the will to import Saudi oil and for this reason, Saudi Arabia wants to establish refineries, storages, and oil processing units at Gawadar to allow for uninterrupted oil flow into western China. The flow of this oil would be through Pakistan which has longstanding friendly bilateral relations with both Saudi Arabia and China. These relations are also independent of each other, hence the relations would not be affected by overlapping national interests. China also wants to have an uninterrupted energy supply to its mainland via alternate routes, which could not be affected by the geopolitics of the seas.

Saudi Arabia also looks at Pakistan as its long-term partner and a potential market for its exports.  Pakistan has a 202 million population, 70% of which is under 35 years of age. In case, peace returns to the region, Pakistan could show exponential growth and bulge of a new vibrant and energy-hungry middle class. In addition to that, Saudi Arabia wants to have stakes in Pakistan’s economy and what better way of doing all this than to invest in an Oil City, which also happens to be geographically nearby Saudi territory. Pakistan has also been very eager for investment diversification in its economy to avoid being labeled a China-only economy. Showing to the world that’s its doors are open for any country willing to invest into Pakistan.

Convergence of interests

This incredible convergence of interests paves the way for the China Pakistan Saudi Economic Corridor to be a very constructive regional partnership.  This partnership would see three regional powers engaging in positive regional trade and connectivity projects which would eventually increase trade, trust, and dependence on each other. Pakistan and China, both have repeatedly stated that CPEC is open for all to join in and collectively reap the benefits of trade and regional connectivity.

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