Nepal and China are in a quagmire as India snubs their requests to open more air routes.

1. Nepal’s dilemma:

Yesterday, Nepal’s Prime Minister Pushpa Kamal Dahal announced the potential involvement of foreign companies in operating all three of Nepal’s international airports. Since two of these airports were constructed with assistance from China, it is logical to assume that the “foreign companies” mentioned are likely of Chinese origin.

Challenges have arisen in operating the Pokhara and Gautam Buddha International Airports due to restrictions from India on using its air routes. Allowing foreign companies to manage these airports could potentially address these operational difficulties, or so Nepal believes.

Since last year, Nepal’s Prime Minister has been requesting India’s assistance to ensure the economic viability of Nepal’s two new international airports.

Pokhara: Nepal’s $216 million international airport in Pokhara, the country’s second-biggest city, opened in January 2024. China agreed provided loans to construct it.

 Gautam Buddha Airport in Lumbini : ADB bank invested $76 million, and the Chinese contractors constructed it.

 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.

India’ reasons:

Since approving new routes for international flights departing from the two airports from Nepal will require opening up India’s airspace close to its border with China, including a portion currently under the control of the Indian Air Force, India is being cautious when it comes to Nepal’s demands due to security concerns.

2. China’s Dilemma:

Following the Galwan clash, India decided to tighten its noose around Chinese entities operating within the country. As a result, Chinese investments, hundreds of Chinese apps, and passenger flight routes faced India’s wrath. However, direct cargo flights between the two countries continued largely unhindered.

China has faced difficulties since COVID-19, which not only slowed its economic growth but also reduced air traffic. Adding to China’s woes is the fact that while China’s recovery in overseas travel post-pandemic has been slow, India’s aviation sector has been booming.

India’s reasons:

India has been very clear in its demands to China. India has repeatedly requested that China not block its evidence-based proposals on Pakistan-sponsored terror entities at the UN Security Council. However, China has refused to budge and often provides no justification for blocking India’s proposals at the UN.

India’s second demand is that China should not find reasons to jeopardise peace along the LAC, a requirement that the PLA, the Chinese Army, finds hard to adhere to.

India’s message is loud and clear.