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In pivot from India, Nepal PM visits China to seek financial investment

Nepal's veteran communist politician K.P. Sharma Oli, returning as prime minister this year for a 4th time, aims to encourage Beijing to provide new momentum to planned infrastructure projects during a dayslong visit to China.

Oli's see was his first to a foreign nation since his July swearing-in, a break from the traditional location of New Delhi, with which Kathmandu has centuries-old ties.

He is set to fulfill Chinese President Xi Jinping and Premier Li Qiang on Tuesday for thorough talks, Beijing stated. Xi has formerly said China would assist Nepal change from a. landlocked country into a land-linked one.

Kathmandu, which registered for China's Belt and Road. facilities effort in 2017, says no project has yet been. carried out considering that a framework pact was tattooed.

Oli wishes to deepen and recalibrate economic ties with. Nepal's northern neighbour as much as he looks for to lower its. traditional reliance on India to the south.

India represents two-thirds of Nepal's international trade. while China has a share of just 14%. However China is a larger. two-way financial institution, having actually lent more than $310 million, World Bank. information shows, or $30 million more than New Delhi.

During his very first term as prime minister in 2016, Oli cut a. petroleum deal with China after New Delhi imposed a six-month. oil blockade on Kathmandu a year earlier.

That move upended India's status as Nepal's sole fuel. provider and paved the way for increased co-operation with. Beijing.

China has because extended Nepal a loan of $216 million to. build a global airport in Pokhara, the second-largest. city about 200 km (124 miles) west of Kathmandu, which began. running last year.

But the Chinese-built airport, claimed by Beijing as a. symbol of Belt and Road success, has actually faced issues,. such as a lack of worldwide flights, due to India's rejection. to let airplanes use its airspace to reach Pokhara.

Debt issues have actually likewise spurred debate amongst political. parties, including Oli's Communist Celebration of Nepal (Unified. Marxist Leninist) whether to embark on Belt and Road projects. using loans from China, instead of grants.

Sri Lanka, a key recipient of Belt and Road loans to fund. transportation and power tasks, defaulted on foreign financial obligation in May. 2022, offering a sobering suggestion of the dangers of unsustainable. borrowing.

(source: Reuters)