Impact of BRI on Regional Power Balance

In a rapidly changing geopolitical landscape, China’s Belt and Road Initiative (BRI) stands as a formidable force reshaping global economic dynamics. However, for countries like Nepal, nestled between two giants, the BRI is perceived as a challenge to regional power dynamics.

The BRI, unveiled by China in 2013, aims to foster infrastructure and economic development by establishing road and rail networks connecting various countries worldwide. Analysts often interpret the BRI as a strategic endeavor aligned with China’s aspirations for global influence.

Currently the world’s second most powerful nation, China seeks to surpass the United States in the coming years. Consequently, China’s engagement in regions such as the Middle East, Africa, and South America is intensifying, facilitated by cooperation, financial assistance, and corporate expansion.

In its pursuit of enhanced global presence and influence, China has prioritized initiatives like the BRI, centered around infrastructure investment and development, ostensibly aimed at addressing poverty worldwide. Nevertheless, analysts caution that the implementation of such projects demands thorough consideration of multifaceted implications.

Regarding Nepal specifically, the country entered into a BRI agreement with China in 2017. However, analysts emphasize the need for Nepal, situated between two global powerhouses, China and India, to carefully evaluate whether and how to proceed with BRI projects, considering the complex geopolitical landscape in which they operate.

Lately, there was a significant amount of opposition and criticism in Nepal regarding the support of the American organization MCC. Neighboring China also expressed its opinion on this matter. Therefore, it cannot be assumed that the opinions of India, America, and Western countries will not influence decisions regarding the BRI. Analysts suggest that Nepal should carefully assess the situation after observing the implementation of the BRI in other countries, taking into consideration the country’s interests, and refrain from rushing into any decisions.

Whether it involves Chinese investment in the Indian border area or Indian investment in the Chinese border area, it is natural for both sides to react based on their security concerns. Therefore, it is imperative for Nepal to consider the regional power balance in the implementation of China’s BRI within its territory.

For instance, the industrial park to be constructed with Chinese investment in Damak, Jhapa, is situated near the Indian border. It is likely that the Indian side will raise objections to this plan, which has been opposed by the locals since now.

Earlier, due to dissatisfaction on the Indian side regarding the Bhairahawa to Pokhara International Airport, the Nepali authorities are cognizant of the ongoing issues affecting the efficient operation of this airport. Therefore, it is imperative for the Nepali side to prioritize the BRI agreement and its implementation.

Transparency in BRI projects is another crucial aspect that must be ensured. Questions regarding the project’s cost, payment modalities, and the right of citizens to access information about the project must be addressed before signing any BRI agreements.