The race for influence in South Asia

While the US is not yet a major player in the region’s infrastructure development, China is poised to become one despite debt concerns.

Following a visit to India, Nepal’s foreign minister Shisir Khanal visited China from June 14 to 17. As expected, the question of Lipulekh and Limpiyadhura was featured in the bilateral talks between Nepal and China, which the latter refers to as Nepal’s bilateral matter with India. China also raised concerns over the US-funded Millennium Challenge Compact (MCC) project and State Partnership Programme. This project was ratified by Nepal in 2022. It is a $500 million grant project , Nepal signed in 2017, to ‘strengthen good governance, economic freedom and investments in the people of Nepal’.