Archive · 27 Aug 2026
Nepal Refuses India-China Choice, Puts National Interest First
Nepal is a country located between India and China.
Its foreign minister said Nepal wants to stay friends with both countries.
He said Nepal should not replace its relationship with one neighbor with its relationship with the other.
He compared India and China to important members of a family.
Nepal will make foreign-policy decisions based on what is best for Nepal.
The minister rejected claims that China has taken control of Nepal.
He said India is Nepal’s biggest trading partner, making up about two-thirds of its trade.
He also said Nepal received no money from its Belt and Road Initiative projects during the past 10 years.
Nepal wants more investment from Indian companies in energy, tourism, technology, infrastructure and transportation.
Foreign Minister Shisir Khanal said Nepal will maintain strong relationships with both India and China.
Khanal said Nepal’s foreign policy will be guided by national interest, not pressure to choose sides.
He rejected the perception that China has captured Nepal, citing longstanding trade and civilisational ties.
India accounts for about two-thirds of Nepal’s total trade, according to Khanal.
Khanal said Nepal received no money from Belt and Road Initiative projects over the past 10 years and invited Indian investment.
- Who
- Nepal Foreign Minister Shisir Khanal.
- What
- Khanal said Nepal will maintain independent relationships with both India and China rather than choose one.
- When
- Thursday, during NDTV World’s Anviksha India-Nepal Dialogue.
- Where
- Kathmandu, Nepal.
- Why
- He said Nepal’s foreign-policy relationships are guided by national interest and the distinct historical importance of both neighbors.
Nepal’s Balancing Position
Competing Influence Narrative
Choosing between India and China
Nepal’s Balancing Position
Khanal said Nepal should maintain both relationships and should not replace one with the other.
Competing Influence Narrative
The question about balanced diplomacy reflects expectations or pressure that Nepal might favor either India or China; Khanal rejected that approach.
China’s influence in Nepal
Nepal’s Balancing Position
Khanal said Nepal has a close, historically rooted relationship with China but rejected the claim that Nepal has been captured by its northern neighbor.
Competing Influence Narrative
Khanal referred to a media narrative from India that Nepal has been almost captured by China.
Economic engagement
Nepal’s Balancing Position
Khanal emphasized India’s dominant role in Nepal’s trade and invited greater Indian investment.
Competing Influence Narrative
He also acknowledged China’s increased economic presence and longstanding trade and economic cooperation, while saying Nepal had received no BRI project funding over the past decade.
- Speaker
- Shisir Khanal, Nepal’s foreign minister
- Nepal’s trade with India
- India accounts for about two-thirds of Nepal’s total trade, according to Khanal.
- Belt and Road Initiative funding
- Khanal said Nepal received $0 for BRI projects over the past 10 years.
- BRI agreements
- Nepal signed a framework agreement in 2017 and an implementation agreement the following year, according to the reports.
- Electricity exports
- Nepal and India have a framework agreement covering the export of 10,000 megawatts of electricity.
- Priority investment sectors
- Energy, tourism, technology, infrastructure, and air and road connectivity.
- Technology exports
- Khanal said Nepal has seen nearly $1 billion in technology-services exports.
