Nepal FM Khanal Courts India and China With Economic Pitch
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- Foreign Minister Shisir Khanal said Nepal seeks a balanced relationship with both India and China, with economic diplomacy and national interest as guiding principles, following his June trips to New Delhi and Beijing.
- Khanal's June 5-7 India visit — the first high-level contact since Nepal's new government took office in March — featured talks with External Affairs Minister S Jaishankar and National Security Adviser Ajit Doval on trade, energy, connectivity, investment, and border management.
- PM Balendra Shah's May remarks had suggested China and the UK be involved in resolving the boundary dispute, a proposal India categorically rejected; the Delhi talks produced a joint commitment to resolve border issues and "misunderstandings" from recent years.
- Khanal's Beijing trip from June 14 included meetings with Chinese Foreign Minister Wang Yi and senior leaders, with discussions covering infrastructure, connectivity, energy, trade, investment, agriculture, technology transfer, IT, and people-to-people ties.
- Nepal's new government is framing foreign investment attraction as the focal point of both engagements, with Khanal stating Kathmandu aims to draw more capital through "effective economic diplomacy."
Why it matters: Khanal's two-city tour comes after PM Shah's May boundary remarks roiled Delhi, indicating Nepal's new government is using investment pledges to reset ties with both neighbors. The matching issue checklists — trade, energy, connectivity, border management — handed to both India and China show Kathmandu is hedging rather than picking sides, treating economic deliverables as its diplomatic currency.
