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China is recalibrating its Nepal policy in the aftermath of the GenZ protests that caught Beijing off guard. The demonstrations and widespread arson—unprecedented in scale—forced several countries, including China, to urgently evacuate their officials and citizens from Nepal.

Since the protests, Nepal-China relations have noticeably slowed. While other major countries such as India, the US, Japan, and members of the European Union have already resumed full engagement with the new government at multiple levels, interaction between Nepal and China has remained limited.

In the early days of the unrest, Beijing was particularly concerned about its security interests in Nepal. The fall of the KP Sharma Oli-led government was a troubling development for China. Until the Sept 8–9 protests, bilateral ties were progressing steadily. Just beforehand, China had invited Oli to the Shanghai Cooperation Organization (SCO) meeting, where Nepal is a dialogue partner. Oli met President Xi Jinping on the sidelines, took part in China’s Victory Day parade, and earlier had signed the Belt and Road Initiative (BRI) framework agreement during an official visit, an outcome that had energized Beijing’s engagement with Kathmandu. China was also preparing a five-year cooperation plan with Nepal and expanding support in agriculture, health, and other sectors. Its engagement with Nepali political parties, including the Nepali Congress, was also deepening.

The GenZ movement, however, appears to have triggered new anxieties in Beijing. Media reports alleging the involvement of Tibetan Original Blood (TOB) raised concerns about external influence. Some left-leaning political leaders further fueled this by suggesting geopolitical motives behind the protests. Additional reports that the government was considering appointing youth leaders allegedly close to the Dalai Lama heightened Beijing’s unease.

Compounding these tensions, the Sushila Karki-led transitional government decided to recall Nepal’s Ambassador to China, Krishna Prasad Oli, who is close to the dismissed prime minister Oli. It did not, however, recall the Ambassador to India, Shankar Sharma. China’s displeasure was evident: notably, the Chinese premier did not send a congratulatory message to Prime Minister Karki, an unprecedented break from diplomatic tradition.

Amid this uncertainty, China moved quickly to protect what it views as its security interests. Ambassador Chen Song raised concerns with top Nepali officials, including Prime Minister Karki and senior officials at the Foreign Ministry. They assured Beijing that the new government remains fully committed to the One-China policy, as previous governments had been.

Chinese officials were encouraged by support from Nepali political leaders, the public, and sections of the media who echoed China’s concerns. In a recent meeting with journalists, Ambassador Chen Song said: “The current government’s commitment to the One-China principle is not less than that of the previous government.”

With these assurances, Beijing’s immediate worries appear to have eased, though several Chinese delegations have since arrived in Nepal to assess the situation firsthand.

Regarding the GenZ movement and upcoming elections, Ambassador Chen has conveyed to Nepali leaders that China will not interfere in domestic political affairs and respects decisions made by the Nepali people. At the same time, Beijing has pledged support for Nepal’s reconstruction and electoral processes.

However, China does not appear optimistic about achieving tangible progress under the interim government, particularly on BRI-related initiatives. Although China continues to work on BRI projects from its side, meaningful progress remains unlikely. Many of the 10 selected projects are seen as unproductive, shaped largely by the political interests of major parties. Still, China’s growing engagement in Nepal’s health and education sectors is expected to continue.

The GenZ protests have also affected tourism cooperation. China had declared 2025 as Nepal Visit Year, but Chinese tourist numbers have sharply declined. Before the protests, the two countries were deepening collaboration on tourism promotion, but the political upheaval has significantly disrupted momentum, and officials expect a further drop in Chinese arrivals in the coming months.

For now, China’s approach appears to be maintaining a working relationship with the Karki administration, prioritising the protection of its core interests while keeping expectations low on broader bilateral progress.

The international community, particularly major powers such as India, China, the United States, and others, are closely watching the unfolding political developments in Nepal.

 Some countries have already welcomed the installation of the interim government tasked with holding elections, while others are yet to issue official statements. The sizeable presence of Kathmandu-based ambassadors at the swearing-in ceremony signaled support for the new government.

On Saturday (Sept 13,) Indian Prime Minister Narendra Modi extended his best wishes to the newly appointed Prime Minister Sushila Karki on assuming office as the head of Nepal’s interim government. “India remains firmly committed to the peace, progress, and prosperity of the people of Nepal,” Modi said in a statement.

Earlier, soon after Karki was sworn in, India’s Ministry of External Affairs (MEA) issued a statement welcoming the formation of the interim government: “We are hopeful that this will help foster peace and stability. As a close neighbor, a fellow democracy, and a long-term development partner, India will continue to work closely with Nepal for the well-being and prosperity of our two peoples and countries.”

On Sept 9, amid street protests, India had urged all concerned parties to exercise restraint and resolve issues through peaceful dialogue. The Indian cabinet’s security committee also met to review the situation in Nepal, while bordering states tightened security along the India–Nepal frontier. During this period, India refrained from commenting directly on Nepal’s political crisis.

Speaking at the historic Kangla Fort in Imphal, Manipur, Modi remarked: “Nepal, in the lap of the Himalayas, is our close friend. We are connected through history and faith, and we are progressing together. On behalf of 1.4bn Indians, I congratulate Sushila Karki on becoming Nepal’s first woman Prime Minister. I am confident she will pave the way for peace, stability, and prosperity in Nepal.”

He also noted: “One thing that has gone unnoticed in recent events is that over the past few days, Nepal’s youth have been seen cleaning the streets. I saw this on social media. This is a sign of Nepal’s resurgence. I extend my best wishes for Nepal’s brighter future.” These statements make clear that India is ready to support the new government in Nepal and continue normal bilateral relations, unlike its recent discontent with developments in Bangladesh.

China has congratulated Sushila Karki on becoming Prime Minister of Nepal’s interim government.

China’s Foreign Ministry says: “China and Nepal share a time-honored friendship. China, as always, respects the development path chosen independently by the people of Nepal. We stand ready to work with Nepal to promote the Five Principles of Peaceful Coexistence, enhance exchanges and cooperation in various fields, and further advance bilateral relation.”

On Sept 10, Chinese Foreign Ministry spokesperson Lin Jian responded to the developments: “China and Nepal are traditional friends and close neighbors. China hopes that various sectors in Nepal will address domestic issues properly and restore social order and stability soon.” Beijing maintains a policy of working with whichever government comes to power—democratic or authoritarian. With its growing influence and economic clout, China is confident it can safeguard its interests regardless of political shifts. However, the dissolution of the KP Sharma Oli-led government is considered a setback for China, as the two countries had been advancing several joint initiatives, including under the Belt and Road framework.

However, Dalai Lama’s congratulations to Prime Minister Karki may have surprised the Beijing.  “As you know, the Nepalese and Tibetan peoples have historically enjoyed a close relationship,” he wrote. “I am very grateful to the government and the people of Nepal for providing facilities for the rehabilitation of Tibetan refugees following their forced escape from Tibet after 1959.

The United States has said that it welcomes the restoration of calm and peaceful resolution following last week’s tragic events.

We commend President Ramchandra Paudel and youth leaders for their commitment to a democratic solution, even as we continue to mourn with Nepal over its losses, U.S Embassy in Kathmandu said in a press statement,

We recognize the Nepali Army and Chief of Army Staff General Ashok Raj Sigdel for their vital role in restoring order and facilitating a peaceful transition of civilian government, the US said, we look forward to working with the interim government in the months ahead as they prepare for new elections.

On Sept 8, the US Embassy led a joint statement with other democratic nations expressing concern over the violence in Kathmandu and elsewhere.

 “We are deeply saddened by the loss of life and injuries during the demonstrations,” the statement read. “Our governments reaffirm our strong support for the universal rights of peaceful assembly and freedom of expression. We urge all parties to exercise maximum restraint, avoid further escalation, and ensure these fundamental rights are protected.” Since Donald Trump’s re-election and the subsequent scaling back of US aid to countries like Nepal, Washington’s priorities in Nepal remain uncertain. With the State Department still in transition, the US government has said little about Nepal’s political crisis.

Soon after Karki took office, the Embassy of Japan expressed hope that Nepal would ensure a peaceful and democratic transition. “We welcome the appointment of Sushila Karki as interim prime minister of Nepal as an important step in this transition. The Japanese government will continue to support Nepal’s development and prosperity and to strengthen the long-standing cordial relations between our two countries,” its statement said.

Similarly, Kaja Kallas, the EU’s High Representative for Foreign Affairs and Security Policy, welcomed the appointment: “As a longstanding partner of the country, we support the people of Nepal and all efforts to ensure democracy, stability, and reconciliation.”

The UK Embassy in Kathmandu also issued a statement, calling the appointment “an important step after last week’s tragic events, which included loss of life, injuries, and damage to property.” It added: “As Nepal’s old friend, we recognize the challenges ahead and reaffirm our commitment to supporting Nepali aspirations for accountability and inclusive governance.”

Overall, the United States, the UK, the European Union, Japan, South Korea, Australia, and other democratic partners appear ready to work with Nepal’s new government, though their priority will be safeguarding the 2015 Constitution, democracy, human rights, and a peaceful transfer of power through elections.

For Prime Minister Karki, gaining the support of major powers such as India, China, the US, and other democratic nations will be crucial to ensuring timely elections, attracting investment, and keeping Nepal’s fragile economy on track. Much, however, will depend on her choice of foreign minister and the diplomatic team she assembles.

Chief Advisor to the Bangladeshi Government, Prof Muhammad Yunus has congratulated Sushila Karki on her appointment as the Prime Minister of Nepal. In his congratulatory message today, he wished for her successful term as the Nepal's Interim Prime Minister.     

Stating that taking on the responsibility of Prime Minister during adverse circumstances in the country reflects the trust and confidence of the Nepali people on her, Chief Advisor Yunus expressed his belief that Nepal will find a path towards development, peace, and stability under the capable leadership of Prime Minister Karki.     

Expressing his willingness to work closely with Prime Minister Karki, who also owns the responsibilities of the Ministry of Foreign Affairs, Chief Advisor Yunus expressed confidence that the long-standing relationship between Bangladesh and Nepal founded on mutual respect and cooperation will continue to grow stronger.     

He also paid tributes to those who lost their lives during the protests and wished a speedy recovery of the injured. (RSS)

China on Wednesday held a military parade in central Beijing to mark the 80th anniversary of its victory in World War II, where Nepal’s Prime Minister KP Sharma Oli attended alongside Russian President Vladimir Putin and North Korea’s Kim Jong-un.

The parade showcased hundreds of advanced weapons and 10,000 troops, underscoring China’s growing military might. Since becoming president, Xi Jinping has taken major steps to modernize the People’s Liberation Army, the world’s largest standing army. The event drew 26 heads of state and government, high-level representatives from various countries, and leaders of international and regional organizations, with Russia, North Korea, and Pakistan prominently represented.

According to Xinhua, this was the first military parade since China embarked on its “new journey” of modernization under Xi. Beijing has set 2035 as its target year to essentially complete modernization. The parade was followed by the Shanghai Cooperation Organization (SCO) summit and Xi’s bilateral talks with Russia, North Korea, and other invitees.

China’s visible support for Russia and its partners is expected to complicate possible negotiations between Washington, Moscow, and Kyiv to end the war in Ukraine. From the SCO summit to the victory parade, Beijing succeeded in bringing together countries whose relations with the US are already strained, many of whom were targets of Donald Trump’s tariff wars. Observers say this signals the weakening of the US-led order and the rise of a China-centered alternative.

Reacting to the presence of Putin and Kim in Beijing, Trump wrote on Truth Social: “Please give my warmest regards to Vladimir Putin and Kim Jong-Un as you conspire against the United States of America.” On Aug 15, Trump and Putin had met in Alaska to discuss ending the Russia-Ukraine war, but no progress has been made since. In the same meeting, Trump also expressed interest in meeting Kim again, recalling their earlier encounters during his previous term.

China’s challenge to the US-led international system has become sharper since Trump began his second term as president. Soon after returning to the White House, Trump cut large portions of US aid to poor countries in health, education, and agriculture. Many in the Global South, facing resource gaps, have turned to China for assistance. While Beijing has not explicitly pledged to fill the void, it has gradually stepped in, drawing these countries closer.

The Trump administration believes it can handle Russia, China, and others individually, abandoning the coalition-based approach of former president Joe Biden. In practice, this has weakened US alliances. Trump has threatened to withhold security guarantees and imposed heavy tariffs even on close partners, pushing some to seek alternatives in Beijing. India, for example, once a key counterweight to China in the Indo-Pacific, was hit with a 50 percent tariff. As a result, India-US relations have nosedived, and New Delhi is now cautiously expanding trade ties with Beijing after easing border tensions.

Meanwhile, China, which is embroiled in tariff disputes with Washington since Trump’s first term, has been deepening outreach to neighboring states and Africa. Alongside its Belt and Road Initiative (BRI), it has rolled out new frameworks such as the Global Security Initiative, Global Civilizational Initiative, Global Development Initiative, and now the proposed Global Governance Initiative. These are presented as alternatives to the US-led order, seeking broader international support.

At the SCO summit, both China and Russia openly challenged the US-led order. In his address, Xi declared that the world had entered a “new period of turbulence and transformation,” adding that global governance stood at a crossroads. “History tells us that in difficult times, we must uphold peaceful coexistence, strengthen confidence in win-win cooperation, and advance in line with the trend of history,” Xi said, introducing his Global Governance Initiative as a step toward a more equitable world system and a “shared future for humanity.” Russia, for its part, has long been advocating for a new order to rival the existing one.

For Nepal, Oli’s participation in both the SCO summit and the military parade reflects deepening ties with China. During his earlier tenure, he signed a series of strategic agreements with Beijing, including a BRI framework. His latest visit will likely strengthen perceptions of him as a pro-China leader in New Delhi and Western capitals, raising questions about Nepal’s ability to maintain balanced relations with all major powers.

Domestically, Oli will face pressure to justify his presence at China’s victory parade while still upholding Nepal’s policy of neutrality and non-alignment. He took a careful step this time by including senior Nepali Congress leaders and ministers in his delegation. At the same time, his upcoming visit to India will test his ability to project balance and assure critics that Nepal is not tilting toward any single power.