SUMMARY
From June 19th to the 24th, Nepal’s Prime Minister K.P. Sharma Oli met with Chinese President Xi Jinping and Premier Li Keqiang during Oli’s visit in Beijing to discuss Belt and Road Initiatives (BRI). Both sides expressed a willingness to work together to build a railway network across the Himalayan Mountains and increase economic ties through BRI (previously known as the One Belt One Road (OBOR) Initiative) transportation and communication projects. The BRI is a Chinese initiative aimed at initiating economic and development programs between Eurasian, Asian, and European countries, but has expanded to include those in South America and Africa as well. Li stated he also hoped the two countries could begin free trade agreement negotiations soon. Nepal has proven itself an important trade partner to China and in 2017, trade between the two countries reached $9.9 billion.
FAO Global Assessment
The projects lined up for Nepal could make it a promising destination for private investors. Nepal has a cheap labor force, increasing political stability, extensive tax benefits for foreign investors, and a series of policies that aim to attract foreign investments. As Nepal is eager to improve its infrastructure, opportunities are expected to spring up in for construction, energy, and infrastructure sectors in the coming months and years.
Related Links
- Belt & Road Portal- 中尼构建跨喜马拉雅立体化网络 跨境铁路迈出实质性步伐
- Xinhua – China, Nepal pledge to enhance cooperation
- The Japan Times- China plans to build railway into Nepal
- Money Control- China, Nepal to build Tibet-Kathmandu railway link
About the Author
Weiting Li – International Policy Associate
Weiting Li is an international policy intern at FAO Global, where she focuses on international trade, technology, and environmental policies. Weiting is currently a second year graduate student pursuing dual master’s degrees in public policy at Georgetown University and Business Administration at University of Geneva. Prior to Georgetown, she was the assistant for government relations and working groups at European Chamber of Commerce in China. She graduated from Gettysburg College with a major in Sociology and a minor in Business.
