A Compromise with India’s Sphere of Influence

Integrating the restive Tibetan minority with China has been the primary domestic challenge for Beijing. Thus far, its Nepal policy has been crafted essentially to address the Tibetan question. The idea of trilateral cooperation between India, Nepal and China apparently floated by Pushpa Kamal Dahal (Prachanda) in April 2013 was, in effect, first made by the former Chinese ambassador to Nepal, Yang Houlan, in 2012. Calling Kathmandu a trade gateway to New Delhi, he said: ‘From an economic viewpoint, Nepal links China (with 1.3 billion people) with South Asia (with 1.5 billion people) the huge common market (that) provides great opportunities for both China and South Asia’.