Capturing new Market and Scoring Political Points - Chinese goods in Nepal

China - Nepal border crossing (Photo: chinanews.com)

While shouting matches, selective leaks on de-monetization, re-monetization keeps politicians and strategists busy here in India; China took her relations with Nepal to its next level. Latest in the string of events is the opening of new trade route which will wide open Nepalese markets to Chinese goods. This will finally break India’s monopoly in Nepalese markets.

New era in ‘Nepal – China’ relations started when trucks carrying goods from western city of Guangzhou arrived at Nepalese capital Kathmandu. Goods worth USD 2.8mn travelled a lengthy 5,200km till Xigaze by train and the rest 870km by road. Goods coming through this lengthy road won’t be cheap unless China is going to subsidize it. But China will definitely do it; after all Nepal is not just a market but a new political theatre.

China also announced her plan to connect Nepal with its rail network through a new line from Gyirong. In addition to this, Chinese Telecom announced an agreement with Nepal Telecom to provide internet through new terrestrial cable.

Well, it’s good for Nepal after all they are not going to be fully dependent on India for goods and services. At the same time, this is going to make Indians uncomfortable.

Sajeev