China claims Nepal's export boost contrary to 15 per cent slump

Kathmandu, Apr. 21

Contrary to Nepal's official trade records, China has claimed that Nepal's exports to the northern neighbour have gone up by 63 per cent.

At a virtual conference organised by the Chinese Embassy in Kathmandu, Ambassador Hou Yanqi said that according to the Chinese statistics, the total volume of trade between China and Nepal increased 67 per cent and reached 1.97 billion USD in 2021, of which Nepal’s export to China increased by 63 per cent.

But Nepal's exports were down by more than 15 per cent last year compared to the previous year. According to the statistics of the Department of Customs of Nepal, export decreased to Rs. 1.01 billion in 2020/21 from Rs. 1.19 billion in 2019/20. However, Nepal imported Chinese goods worth Rs. 233.9 billion in the last fiscal, up from Rs. 181.9 billion in 2019/20.

Nepal's trade deficit with China was Rs. 180.7 billion two years ago which went up to Rs. 232.9 billion last year.

Ambassador Yanqi said that the Chinese data proved that the so-called 'soft block' on Nepal is totally baseless. "We noticed that now Nepal’s economy has encountered some difficulties, mainly as a result of the slow recovery of global economy and the shock of the pandemic," she said.

According to her, Chinese side has made continuous effort to improve the capacity of one-way cargo transportation at the Kerung and Zhangmu border ports, and tried its best to ensure the supply of materials for production, living, anti-pandemic, elections and others to Nepal while fighting the pandemic on an ongoing basis.

She also maintained that the Chinese side attaches great importance to the desire of Nepal to resume export to China through land ports. The relevant authorities, neighboring provinces and border port authorities of the two sides are in constant communication and coordination in this regard.

 China firm in building cross-border infrastructure

Meanwhile, China has said that although it would take 'quite a time', China-Nepal cross-border railway project would be materialised.

"We have started our part to take the project ahead, however the difficult topography with fragility and environment issue will slow the progress of the project," Hou said.

The Cross-border Railway Project reflects the good expectations of the two peoples, she said while adding that the two sides have signed the technical assistance plan for the feasibility study project for it, marking another solid step in advancing the project.

Likewise, she said that China is willing to work together with Nepal to complement each side’s advantages, actively promote the power grid interconnection, and build a new channel for Nepal’s power export.

"It must be pointed out that these projects will come across many difficulties such as complex geological conditions, frequent natural disasters, and high construction cost. This requires both sides to formulate practical plans on technical standards, funding sources and so on in the spirit of seeking truth from facts," said Hou.

While the railway project would be developed as a part of the Belt and Road Initiative (BRI), Hou said that the initiative launched by Chinese President Xi Jinping is not a grant support but a cooperation modality.

She expressed her belief that over time, the Trans-Himalayan Multi-Dimensional Connectivity Network will develop steadily and achieve new results. The Trans-Himalayan Multi-Dimensional Connectivity Network has gradually moved from a blueprint to a reality, she said while adding that since last year, BRI cooperation between Nepal and China was enhanced despite COVID-19 pandemic.

Meanwhile, she also mentioned that BRI has never been a 'geopolitical strategy', but a road of development that helps countries along the road, especially developing countries to achieve the 2030 Agenda for Sustainable Development and promote common development and prosperity.

Ambassador Hou said that China will gradually take back Nepali students who were studying there and have been stuck in Nepal due to pandemic. She said that the resumption of direct flights between the two countries will facilitate the task to taking them back. She also expressed concerns on the difficulties faced by the Chinese investors and contractors who are working in Nepal due to the policy instability here.

 Published in The Rising Nepal daily on 22 April 2022.