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China keen to ramp up trans-Himalayan project with Nepal, vying with India for influence

Head of China’s aid agency says Beijing should implement more projects ‘to promote Nepal’s economic and social development’

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Chen Xiaodong, chairman of China’s CIDCA aid agency, Nepal’s Prime Minister Sharma Oli to discuss Nepal-China ties and infrastructure projects. Photo: Handout
Sylvie Zhuangin Beijing
China hopes to speed up work on a trans-Himalayan network project to connect it with Nepal, a development that may raise concerns from regional rival India.
On a three-day trip to Nepal, Chen Xiaodong, the head of China International Development Cooperation Agency, said China was willing to further align development strategies with Nepal and accelerate the construction of a trans-Himalayan network.

“[We] should implement more projects in areas such as agriculture, new energy, health and education to promote Nepal’s economic and social development and improve people’s livelihoods,” Chen was quoted as saying in a statement on the agency’s social media account on Wednesday.

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Chen’s visit, which ended on Tuesday, comes as China has managed to repair ties with its regional rival India following a border clash in 2020.

But the two Asian giants are competing to win over partners such as Nepal for influence in the region.

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Landlocked Nepal sits between India and China, with India traditionally seen as Nepal’s main ally because of their shared culture and proximity.

However, Nepal has drawn closer to China in recent years because of Beijing’s infrastructure investment. China has in recent years boosted economic interactions with the Himalayan nation by pumping millions of dollars into projects, ranging from roads to hydropower plants.

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