Trade deficit with the northern neighbour is a matter of concern
KATHMANDU, SEPTEMBER 24
The Nepal-China Business Summit jointly organised by the Federation of Nepalese Chamber of Commerce and Industries (FNC- CI) and China Council for Promotion of International Trade (CCPIT) in Beijing today, amid Prime Minister Pushpa Kamal Dahal's visit to the northern neighbour saw officials and representatives from both the public and private sectors express commitment to increasing Chinese investment in Nepal, promoting tourism, and facilitating Nepal's exports to China.
Speaking at the programme, Prime Minister Dahal said that Nepal has many untapped sectors with huge potential alongside an improving environment for investment and called on investors to invest in Nepal.
Stating that no country can prosper without cooperation between the government and the private sector, PM Dahal expressed commitment to creatingan investment-friendly environment in the country and also thanked the federation for taking initiatives in the country and abroad in promoting investment, tourism, and exports.
"China is the country that invests the most in Nepal and is the second largest partner in terms of trade. However, the trade deficit between the two countries is a matter of concern for Nepal.
Since there is a market for agricultural products in China, efforts should be made to facilitate trade of such items," PM Dahal said.
Addressing the summit, Li Fei, vice-minister of the Ministry of Commerce of China, mentioned that the relationship between China and Nepal is very old, and shared that economic activity is also increasing between the two neighbours. He said that China is increasing investment in Nepal and will continue to do so in the coming days.
The vice-minister also said that China is ready to cooperate in the fields of tourism and agri-culture in Nepal.
At the summit, FNCCI President Chandra Prasad Dhakal remarked that the Nepal government is trying to create investment opportunities in Nepal, promote tourism, and expand exports.
FNCCI President Dhakal said that there is great potential in theservice sector including hydropower, tourism, manufacturing, and the information technology sector and that foreign investment has also increased in tourism infrastructure such as cable cars, theme park resorts, etctrea.
Stating that Nepal is an attractive destination for Chinese tourists, Dhakal urged the Chinese gov-ernment to keep Nepal on the priority list. He also said that there is a need for Chinese banks to set up branches in Nepal citing the increasing economic activities between the two countries.
CCPIT Vice-President Zhang Shaogang said that the federation is an old partner organisation and said that the summit isimportant in enhancing bilateral trade between the two nations.
He expressed confidence that CCPIT will provide support to increase investment in Nepal and facilitate the export of Nepal's products.
Meanwhile, Manoj Paudel, chairman of FNCCI's Foreign Investment and International Rela-tions Forum, made a presentation on the potential of hydropower, tourism infrastructure, manufacturing sector, and service sector in Nepal. He said that along with the natural resources in Nepal, the country also has a comparative advantage in terms of young labour force.
As many as 120 Chinese companies and high-ranking officials participated in the summit that saw the attendance of 50 businessmen and officials from the FNCCI, and the Confederation of Nepali Industries (CNI) and Nepali officials participating in the prime minister's delegation.
Earlier, a bilateral discussion on expanding the cooperation, implementation of joint projects, and facilitating Nepal-China investment and trade was also held between the FNCCI and CCPIT.
During the summit, IME Group signed an investment expansion agreement with CAMC Engineering Company. In addition, Chaudhary Group has also signed an agreement with GAC Motor and Hozon Auto.
A version of this article appears in the print on September 25, 2023, of The Himalayan Times
