Ongoing Negotiations with China on BRI and Infrastructure Investment

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Nepal and China have been engaged in diplomatic negotiations on the Belt and Road Initiative (BRI), Chinese development cooperation and infrastructure development. Since signing the BRI framework agreement in May 2017, the two nations have been working to finalize an implementation plan for the ambitious initiative.

While China envisions the BRI as a catalyst for regional connectivity and economic growth, Nepal has expressed reservations about the terms, particularly concerning the nature of financing and BRI’s inclusion of other sectors, including security. This has led to protracted discussions, with Nepal seeking to balance its need for infrastructure development with concerns over national priorities, debt sustainability and regional security implications. The broader geopolitical dynamics in the region, including India's stance on BRI, also influence the trajectory of Nepal-China negotiations.