Will Nepal’s new coalition government tip the scales of India-China rivalry?
- China and India watch closely to see if changes to Nepal’s government will affect its affiliations with the neighbouring powerhouses

The changes bring a parliamentary shift away from the previous communist-dominated rule, after the Communist Party of Nepal – Unified Marxist Leninist (CPN-UML) left its alliance with the Communist Party of Nepal -Maoist to form a coalition instead with the centrist, India-leaning Nepali Congress – previously the largest opposition party.
As the new coalition now holds the balance of power, the move meant a change of leader. So Prime Minister Khadga Prasad Sharma Oli of the (CPN-UML) took office on Monday – the fourth time he has served in the position – in place of Pushpa Kamal Dahal, head of the Maoists.
However, observers say that shift is unlikely to fundamentally change the status quo, as Kathmandu has economic and security dependencies on both Asian powerhouses.
According to Professor Lin Minwang, deputy director of the Centre for South Asian Studies at Shanghai’s Fudan University, Nepal’s foreign policy is one of “pragmatism”.