Nepal stands out as a remarkable case study of deft diplomacy in the changing world of geopolitics. Because Nepal is wedged between two giant neighbors, India and China, its initiatives to forge dependable connections without compromising its strategic independence serve as a role model for contemporary diplomacy. Nepal’s most recent diplomatic engagements with China, and its unwavering dedication to neutrality in the face of shifting global alliances, is a case in point. On September 25, 2023, Nepal’s Prime Minister Pushpa Kamal Dahal signed a series of agreements and MoUs to bolster bilateral ties with China. These include collaborations in areas such as digital economy, green development, agriculture, and more. 

A significant one highlighted the formation of a joint committee to reassess the Nepal-China Trade and Payment Agreement. However, the following day saw Nepal tactically declining China’s invitation to be part of the Global Security Initiative (GSI), while still expressing interest in major cross-border infrastructure projects. An extensive joint statement released by both sides delineated a number of border infrastructure projects but did not mention GSI.

“The Nepali side supports the Global Development Initiative (GDI) proposed by China, and will consider joining the Group of Friends of the GDI and both sides to cooperate under Xi’s Belt and Road Initiative (BRI).”

Nepal's clear policy enunciation

It is a significant move by the Nepalese government to partner in the development project but not accept security collaborations. It’s worth mentioning President Xi Jinping's call for the GSI in a virtual keynote address last year, pushing for a vision of shared and sustainable security. This proposal aimed at strengthening regional security in Asia, emphasizing respect for each nation’s unique sociopolitical fabric.

Previously, Prime Minister Dahal had stated that Nepal’s joining GSI might jeopardize Nepal’s strategic equilibrium with India and China. He further explained, “Nepal’s approach towards China and India is rooted in mutual respect and non-alignment. While both are treasured neighbours and partners, our ties with one don’t affect the other. Any disagreements will be addressed through amicable bilateral talks.”

Ensuring strategic freedom

Nepal’s recent diplomatic moves aren’t mere tactical decisions but reflect its historical background and vision for the future. Located in a vital geographical position, Nepal remains keen on safeguarding its strategic freedom, ensuring it isn’t ensnared in the power plays of global giants. The diplomatic exchanges with China show Nepal’s nimble diplomacy, given its unique position between two dominant South Asian powers, India and China. Nepal’s participation in bilateral infrastructure projects with China exemplifies its aspiration for mutual economic growth. Yet, its decision to distance itself from the GSI indicates its commitment to remain neutral, given its deep-rooted ties with India. 

Nepal stands firm on not openly aligning with any single nation, carving an independent trajectory instead. With international collaborations, Nepal seeks to tap into developmental opportunities while preserving its strategic freedom and national integrity. Central to Nepal’s foreign policy is a simple yet profound principle: it seeks growth and collaboration but will always remain neutral among the regional behemoths and global powerhouses.

(The author is a Faculty, Department of International Studies, Political Science and History, Christ University, Bangalore. Views are personal. He can be contacted at anuragjnu@gmail.com)