Why is China financing elections in Nepal?

Beijing wants to mould public opinion in the himalayan nation as it’s important for its one belt one road project

Following a summit between China’s President Xi Jinping and Nepal’s Prime Minister Pushpa Kamal Dahal Prachanda, Beijing announced $1 million towards the country’s local elections in May. The move brings Beijing’s non-interference doctrine under the scanner again, after it was questioned during the Sudanese civil war. China allegedly fuelled the civil war by providing the money — through the purchase of oil and arms.

Back then, China had to resort to covert tactics to ally with a political faction. Today it’s far more powerful with a bigger stake and influence across the globe, and thus an expression that’s more overt—as that in Nepal.

But Madhesis oppose the election until their demands for territorial re-demarcation and political representation are met. China’s funding is viewed as an act “fanning chances of conflicts in Nepal.”

Immediately after his China visit Prachanda confirmed the May elections stating nonparticipation would be viewed as secessionist tendencies. Failure to induct ‘Madhesi-centric parties’ in the elections, fears Nepal’s Deputy Prime Minister and Minister for Local Development Kamal Thapa, may instigate ‘separatists.’

Why would China want this?

Its stakes in Nepal are rising. China feels making inroads into political decision-making is the only way to protect its interests.

This situation is identical to the one that surfaced in Sudan where Beijing had already invested billions in the nation’s oil sector by the time of the war.

Investing in the elections would give Beijing the room to arm-twist Nepal’s resource starved political circle.

As this Global Times op-ed clearly states: China has every reason to require the Nepalese government to safeguard the interests of Chinese investors and contractors. Nepal is an important country for its One Belt One Road (OBOR) project and during this summit, Prachanda assured Kathmandu’s participation.

China announced a $8.3 billion investment plan. Several projects key to OBOR need speeding up such as the Kathmandu Ring Road Phase II, Pokhara International Airport, Gautam Buddha International Airport and the West Seti Hydropower.

India remains a concern. Many in Beijing believe New Delhi facilitated Prachanda’s coming to power to form ‘a proIndia government.’

It remains to be seen whether China’s political investment in Nepal brings about the brownie points it expects.