Chinese Embassy Archives - Lokmarg

Nepal’s Pokhara Airport Under China’s Belt-Road Radar

By LokMarg 1st January 2023

Ahead of the inauguration of Nepal’s new Pokhara airport, in a surprise announcement, the Chinese Embassy in Kathmandu has tweeted, “This (Pokhara airport) is the flagship project of the China-Nepal Belt and Road Initiative (BRI) cooperation,” writes Anil Giri, in The Kathmandu Post.

Notably, Nepal Prime Minister Pushpa Kamal Dahal on Sunday inaugurated the country’s third international airport.
“The Pokhara International Airport has been inaugurated today. With this, the city now is in connection with the international market,” Dahal announced.

The Chinese Embassy tweet comes at a time when Kathmandu reiterated that no project under Beijing’s Belt and Road Initiative has been signed and Nepal and China are working to finalize the text of project implementation under the BRI, reported The Kathmandu Post.

After Nepal and China signed the framework agreement on BRI in 2017, Nepal initially selected 35 projects to be undertaken under Chinese President Xi Jinping’s flagship connectivity project.

Later, upon Beijing’s request, the total number of projects was whittled down to nine with Pokhara airport off the list. The government signed a USD 215.96 million soft loan agreement with China in March 2016 for the construction of the new airport in the lake city, said Giri.

The loan agreement between the Civil Aviation Authority of Nepal and China EXIM Bank does not mention the BRI.

At least three officials from the Ministry of Foreign Affairs, Ministry of Finance, and Ministry of Tourism told the Post that loan negotiations for the project had begun before the BRI was conceptualized in China.

The Chinese Embassy’s claim, therefore, is their own interpretation, which the Nepali side does not own up to, they said, reported Giri.

Even when the project completion ceremony of the Pokhara airport was held in Kathmandu during Chinese Foreign Minister Wang Yi’s visit in March last year, there was no mention from either side of BRI in connection with the airport.

If the Chinese Embassy says that this airport is built under BRI, this is their definition, a foreign ministry official said. “What we have agreed as of now is that China will fund two other projects under the BRI.”

“Pokhara airport was conceived of long ago and as per our rather in-depth conversations with the Chinese side, it does not fall under the BRI framework,” the official added.

“But the thing is, now, all kinds of Chinese assistance either in the form of loan or grant, or any project undertaken or completed by the Chinese, are being defined as falling under the BRI. As per our definition, this particular project does not fall under the BRI framework.”

The previous Sher Bahadur Deuba government communicated to the Chinese side that Nepal does not want loans and preference would be given to grants considering the size and nature of Nepal’s economy said, Giri.

If unavoidable, a loan should come with the interest on par with a multilateral lender or not exceed one percent per annum. In most cases, the interest rate of projects under the BRI is two to four percent. The Deuba government also made clear that Nepal is not in a position to take commercial loans to fund the project, reported The Kathmandu Post.

The Nepali side is also looking for a similar arrangement for the repayment of loans under the BRI, extending the period to 40 years and beyond. Nepali officials have also called for fair and open competition among the bidders for BRI projects.

Speaking with journalists on April 22, 2022, outgoing Chinese ambassador Hou Yanqi said the BRI consists of both grants and commercial loans.

“It is based on a cooperative modality that includes grants and commercial cooperation,” she said.

Hou said that many of the projects that China is currently building in Nepal fall under the BRI framework.

“This (BRI) is a long project. The projects that are being constructed in Nepal under BRI have three modalities. First, it is like Gautam Buddha Airport in Lumbini where ADB has invested and Chinese contractors have worked. Second, the modality of Pokhara Airport where China’s commercial loans and grants are there and the construction company is also Chinese,” Hou said.

“And the third modality is like the Tribhuvan International Airport in Kathmandu. The responsibility of improving this airport has been given to a Chinese company and the cost will be borne by the Nepal government.”

In bilateral documentation, none of these projects has gotten grants or loans earmarked BRI, finance ministry officials said, reported The Kathmandu Post.

“Publicity is one thing but in documentation or while signing the loan negotiation or negotiating the projects, the Chinese side never said Pokhara Airport falls under the BRI,” the finance ministry official added.

The Chinese Embassy in its press note has further said, “The new airport is designed and built in accordance with the standards of China and the International Civil Aviation Organization, which reflects the quality of Chinese projects, symbolizes the national pride of Nepal, and becomes a remarkable sign for China and Nepal to jointly build the Belt and Road Initiative.”

“In March this year, State Councillor and Foreign Minister Wang Yi visited Nepal and attended the completion ceremony of the construction … of the airport. Several prime ministers of Nepal also visited and promoted the project construction,” the embassy said.

A joint secretary at the Ministry of Culture, Tourism and Civil Aviation said that loan negotiations for the project had begun in 2008, ruling out the BRI component in the airport.

Former Nepali ambassador to China Leela Mani Paudyal said it is difficult to determine which project falls under the BRI, reported The Kathmandu Post.

“I don’t know whether this particular project falls under the framework of BRI or is funded under the BRI scheme. Of late, all Chinese investment–grant or loan–is tagged as BRI cooperation.”

By this definition, this particular project may fall under the BRI but, again, there is no clear demarcation between a BRI and a non-BRI project, said Paudyal. (ANI)

China Acting As An Impediment To Sri Lanka’s IMF Deal

By LokMarg 15th December 2022

The uncertainty and lack of clarity regarding the extent and time frame of China’s restructuring of its debt to Sri Lanka are delaying Sri Lanka’s bailout package from the IMF, according to Asian Lite.

Debt restructuring is one of the prerequisites of the IMF’s bailout package for Sri Lanka. The process is, however, getting delayed due to Sri Lanka’s dire situation and a delay in concrete commitment from China, the island nation’s largest bilateral lender. Sri Lanka seems to be missing its December deadline.

According to the Opposition legislator from the Tamil National Alliance, Shanakiyan Rasamanickam, China is acting as an impediment to Sri Lanka’s IMF deal and has been paying bribes to force down unnecessary projects.

“If China is truly Sri Lanka’s friend, ask the Chinese to help with the [debt] restructuring and the IMF programme.” Referring to Rajapaksa-era mega infrastructure projects in Hambantota and Colombo funded by the Chinese, the Batticaloa MP, as quoted by Asian Lite, said: “That is not China being Sri Lanka’s friend, that is China being Mahinda Rajapaksa’s friend.”

The Chinese Embassy refuted the allegations and claimed that bilateral negotiations are on after working teams of different Chinese banks visited the island nation. Rasamanickam’s allegations are incorrect, said the embassy.

The Chinese investments under the BRI and bilateral projects with other countries have always been seen with suspicion for their lack of economic feasibility as well as debt-creating potential. Now as Sri Lanka is negotiating with China for debt restructuring and China has claimed to have shown readiness for restructuring its debt to Sri Lanka, “It will be the first time a major Asian Belt and Road Initiative borrower is going through the process… China’s approach to Sri Lanka’s debt restructuring and the extent of debt relief offered will set a precedent for China’s role and behaviour in other countries as well,” said the research report, according to Asian Lite.

Another country, Djibouti, at the heart of China’s multibillion-dollar “Belt and Road Initiative,” is struggling under mounting financial pressure and has suspended debt repayments to China, its main bilateral creditor, reported European Times.

Djibouti, a tiny nation at the intersection of the Red Sea and the Gulf of Aden, owed a total of USD 2.68 billion to external creditors at the end of 2020, according to the World Bank.

The African country struggling to repay Chinese loans has brought criticism to the Chinese model of project financing for creating dept traps for developing countries.

In its latest report on Djibouti, the World Bank stated that in 2022, Djibouti’s debt servicing costs tripled to USD 184 million from USD 54 million in 2021. A further increase to USD 266 million has been predicted for 2023.

The International Monetary Fund (IMF) after considering the sharp projected increase in Djibouti’s external debt servicing, in late 2021, declared Djibouti’s debt as being unsustainable. (ANI)

Global Protests Mark China’s National Day

By LokMarg 2nd October 2022

As China prepares to hold the 20th National Congress of the Communist Party of China (CCP) which is widely expected to approve a third term for President Xi Jinping, anti-China protests were held all across the world to mark the National Day of China on October 1.

In Tokyo, hundreds of Japanese citizens came out on the streets to express solidarity with the oppressed people of Tibet, Xinjiang, Mongolia, Hong Kong, and Taiwan.
Early morning joggers around the Chinese Embassy in Tokyo city were greeted by slogans criticizing China for its brutal crackdowns in all minority regions. This was the protest against the continuing denial of basic human rights that they promised even in the Chinese constitution.

Posters also spoke of the damage China has caused to Japan in the past fifty years, despite Japanese companies having helped establish China’s modern industrial foundations.

Later in the day, activists from across Japan, as well as representatives of the minority ethnic communities in China, walked to the center of Tokyo carrying banners, flags, and posters denouncing China.

They urged the rest of the world to wake up to the harm China is causing.

The demonstration was held around the twin themes of – ‘nothing to celebrate and ‘day of shame’, both sentiments that echo strongly not just in Japan, but increasingly across the world.

Just a couple of weeks ahead of the 20th National Congress of the CCP, such a gathering showed unequivocally that despite businesses continuing to rely on China, the people of Japan wanted to send out a strong message to China and the CCP: respect the people and their rights. Without these, your power has no legitimacy, and your leadership will have no legacy worth the name.

A small protest was also organized in front of the Chinese Embassy in Vienna, Austria. Protesters were carrying anti-CCP posters and the Tibetan flag.

The Tibetan Diaspora, along with President Nawang Lobsang Taglung of the Tibetan organization in Vienna, held a symbolic protest. Nawang said, “The fight for the freedom of Tibet will continue in the future.”

In Paris, multiple civil society organizations opposed to the Chinese government came together to protest against the Chinese government’s human rights violations and policy of aggression against various ethnic groups.

At a large demonstration near the Chinese embassy, more than 100 people from organizations like Students for Free Tibet (SFT), the Committee for Liberation of Hong Kong, and the Association of Uyghurs in France, as well as Mongolian, Taiwanese, and Vietnamese groups, joined this protest.

Marking the day as the Global Day of Action, the protesters carried placards with slogans against China and demanded that China end the Uyghur genocide and other violations against the people of Tibet, Hong Kong, and Taiwan.

They also called on the global community to unite to prevent China from committing these crimes against humanity.

In Amsterdam city of Netherlands for the first time, several Chinese organizations-Chinese Democratic Party Overseas Committee, Netherland for Hong Kong, Southern Mongolian Congress, The Church of Almighty God, Stitching Nederland Service Centre Voor het verlaten van de Chinese Communistische (END CCP Service Center Netherlands), and Human Rights Watch in China participated along with Tibet Support Group in condemning the Chinese Communist Party.

Protests were witnessed in major States across the United States, including New York and California, as well as in Canada.

In Istanbul city of Turkey, the Uyghur community marked the 73rd National Day of China as the beginning of an era of occupation, persecution, starvation, and inhuman crimes against the peoples of East Turkestan.

Uyghur NGOs protested near the Chinese Consulate in the Sariyer district of Istanbul against the Chinese policies of assimilation and genocide.

Uyghur leaders spearheading the protest included Hidayetullah Oghuzhan – President of East Turkestan Education and Solidarity Association (ETESA), Abduselam Teklimakan – President of East Turkestan New Generation Movement (ETNGM), Nur Muhammad Majid – visiting representative/ lawyer from East Turkestan Australia Association, Rushan Abbas – noted Uyghur activist and Founder & Executive Director of Campaign for Uyghurs, members of Uyghur Academy and several others.

The protest started with the recitation of the verses of the holy Quran and the national song of East Turkestan. Protestors raised slogans against Chinese policies and Chinese President Xi Jinping, including ‘China Stop Genocide’, ‘Release our relatives’, “Where are our relatives?”, and ‘Stop Starvation’.

Protestors also displayed photographs of their family members missing in Chinese internment camps whom they have not been able to contact for many years.

A motorbike rally of around fifty Uyghur activists carrying flags of Turkiye and East Turkestan passed near the protest site. A signature campaign on a large banner appealing for the support of the United Nations was also showcased.

According to Amnesty International, the human rights situation across China continues to deteriorate. Human rights lawyers and activists reported harassment and intimidation; unfair trials; arbitrary, incommunicado, and lengthy detention; and torture and other ill-treatment for simply exercising their right to freedom of expression and other human rights.

In its 2021 report, Amnesty International stated that the CCP government continued a campaign of political indoctrination, arbitrary mass detention, torture, and forced cultural assimilation against Muslims living in Xinjiang.

The Amnesty report compiled data collected between October 2019 and May 2021. It relied on interviews with 128 people, including 55 former internment camp prisoners, and 68 family members of people either missing or presumed detained. (ANI)