By Nirmal P. Acharya

When it comes to infrastructure, China has to be mentioned with great respect. In a short period of time, China has built the world's largest and most extensive road network, railway network, air routes and airports, as well as ultra-high voltage power transmission grids.

Realizing interconnection with China's infrastructure is a path to prosperity for Nepal.

The core data of China's infrastructure network is as follows:

1. Road Network - Total mileage: As of 2023, the total mileage of highways in China has exceeded 5.35 million kilometers, ranking first in the world. Expressways: The mileage of expressways has reached 1.77 million kilometers, covering 99% of cities with a population of over 200,000.

Rural Roads: All towns and administrative villages with conditions have achieved 100% access to paved roads.

2. Railway Network - Total mileage: The operational mileage of railways reached 159,000 kilometers, among which the mileage of high-speed railways was 45,000 kilometers, accounting for over 70% of the global total mileage of high-speed railways.

Freight Capacity: The total number of China-Europe freight trains has exceeded 78,000 (as of 2023), connecting over 200 cities in 25 European countries.

Technical Standards: China's high-speed railways have achieved a commercial operating speed of 350 kilometers per hour, and the technology has been exported to multiple countries.

3. Aviation Network - Number of Airports: There are 259 civil transport airports (as of 2023), and the number is planned to increase to 400 by 2035.

Route Coverage: There are over 5,000 domestic routes and international routes that reach 160 cities around the world.

Cargo Hub: Airports such as Shanghai Pudong and Guangzhou Baiyun have ranked among the top ten global cargo hubs.

4. Ultra-high Voltage Transmission Grid - Length of Lines: Over 30 ultra-high voltage transmission projects have been completed, with a total mileage exceeding 45,000 kilometers.

Transmission Capacity: The transmission capacity of a single line can reach 12 gigawatts, and the maximum transmission distance can exceed 3,000 kilometers.

Integration of Clean Energy: The proportion of renewable energy transmitted by ultra-high voltage exceeds 40%, supporting the "West-to-East Power Transmission" strategy.

Nepal, as a landlocked country, can leverage connectivity with China's advanced infrastructure to unlock significant development opportunities. Here’s a structured analysis of the potential benefits and mechanisms:

1. Transportation Networks: Reducing Landlocked Constraints

Rail and Road Links: The proposed China-Nepal Trans-Himalayan Railway (connecting Kathmandu to Tibet’s rail network) and upgraded highways (e.g., Arniko Highway) would reduce Nepal’s reliance on traditional transit routes through India. This diversifies trade access, lowers costs, and enhances economic sovereignty.

Trade Corridors: Direct links to China’s Belt and Road Initiative (BRI) corridors (e.g., the Silk Road Economic Belt) could position Nepal as a gateway between South Asia and China, attracting transit trade and logistics investments.

2. Energy Infrastructure: Hydropower and Grid Connectivity

Hydropower Development: Nepal’s vast hydropower potential (estimated 50,000+ MW) could be harnessed through Chinese expertise in dam construction and ultra-high voltage (UHV) transmission lines. Exporting surplus electricity to China’s energy-hungry markets would generate revenue.

Energy Security: Cross-border grids could stabilize Nepal’s domestic power supply, supporting industrialization and reducing reliance on imported fossil fuels.

3. Tourism and Aviation Growth

Air Connectivity: Upgraded airports (e.g., Pokhara International Airport, built with Chinese collaboration) and new air routes could boost tourism, a critical sector for Nepal. Direct flights from China would facilitate increased arrivals, capitalizing on China’s outbound tourism market (pre-pandemic, Chinese tourists comprised ~15% of Nepal’s visitors).

Trans-Himalayan Tourism: Enhanced infrastructure could promote cross-border tourism circuits (e.g., Tibet-Nepal cultural routes), fostering local economies.

4. Trade Diversification and Market Access

Access to Chinese Markets: Improved logistics would enable Nepal to export goods like agriculture, handicrafts, and textiles to China, reducing dependence on India. Preferential trade agreements (e.g., duty-free access for 8,030 Nepali products to China) could be better utilized.

Special Economic Zones (SEZs): Establishing SEZs near border points (e.g., Tatopani/Khasa) with Chinese investment could attract manufacturing and processing industries, creating jobs.

 5. BRI Investments and Financing

 Infrastructure Funding: BRI projects could mobilize Chinese investment in critical areas (roads, railways, energy). However, Nepal must negotiate favorable loan terms to avoid debt distress, learning from the experiences of other BRI partners.

6. Technology Transfer and Skill Development

Capacity Building: Collaboration with Chinese firms could transfer technology in renewable energy, construction, and digital infrastructure (e.g., Nepal’s 4G/5G rollout with Huawei/ZTE). Training programs for Nepali workers would enhance local expertise.

7. Geostrategic Balance and Regional Connectivity

Neutrality Leverage: Connectivity with China provides Nepal counterbalance to its traditional dependence on India, enhancing its negotiating power in regional diplomacy.

Transit Hub Potential: As a bridge between China and South Asia, Nepal could attract investments in warehouses, dry ports, and logistics networks.

Challenges and Considerations:

Geographic Hurdles: Himalayan terrain increases construction costs and risks (e.g., earthquakes). Sustainable engineering and environmental safeguards are critical.

Debt Management: Transparent financing models (e.g., public-private partnerships) are essential to avoid unsustainable debt.

India-Nepal-China Dynamics: Nepal must navigate sensitivities with India while engaging China, ensuring regional stability.

Conclusion:

By strategically aligning with China’s infrastructure, Nepal can transform its landlocked disadvantage into a land-linked advantage, fostering economic growth, energy security, and regional influence. Success hinges on prudent governance, environmental stewardship, and balanced diplomacy.

The Nepalese government signed the Memorandum of Understanding on cooperation under the Belt and Road Initiative many years ago. By actively responding to the Belt and Road Initiative, Nepal will be able to embark on the path to prosperity.