Nepal's change of guard a major diplomatic setback for China: Report

Kathmandu [Nepal]: The unexpected defeat in Nepal of several advisors of KP Oli, former PM and president of the Communist Party of Nepal (Unified Marxist-Leninist) and Maoist chairman Pushpa Kamal Dahal Prachanda’s weakened legislative presence has reduced the chance of Communists having influence in the parliament, according to

Nepal’s latest change of guard may thus come as a major diplomatic setback for Chinese President Xi Jinping as the power equations in Kathmandu, under the Deuba-led coalition, are unlikely to be inclined towards Beijing.

China will thus have to recalibrate its position in Nepal.

Deuba, who is most likely to form the government in Nepal, has already invested his political capital behind pushing the Millennium Challenge Corporation agreement with the United States, work on which has already begun, reported

The five-party coalition government led by Nepali Congress President Sher Bahadur Deuba has had limited engagement with China since its formation in July 2021, except for a few bilateral mechanism-level meetings and a phone conversation between the two foreign ministers.

China got upset after the Deuba-led government raised the issue of China’s alleged border encroachment without consulting Beijing.

According to a report by, China has despite these conditions, always kept a close eye on political developments including elections in Nepal. Ever since the Nepalese Parliament ratified the United States (US) Millennium Challenge Corporation (MCC) Compact in March, several Chinese leaders carried out back-to-back high-level exchanges with Nepal.

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