Nepalese FDI Law and Policy with regard to the Belt and Road Initiative

Abstract

In 2013, China unveiled its dream of retrieving the ancient Silk Road by undertaking massive infrastructure projects and adding value to ports around the Silk Road. The Belt and Road Initiative ("BRI") refers to China's proposed Silk Road Economic Belt and Maritime Silk Road This big project has recently been accepted by Nepal. Nepal has its own foreign direct investment ("FDI") laws and policies. This paper aims to analyze these laws and policies from the perspective of China's BRI. The specific objective is to explore the importance of BRI in Nepal and the major challenges for its implementation in reference to Nepalese FDI laws and policies. The essence of BRI is to promote regional and crosscontinental connectivity between China and other countries along the Belt and Road. The BRI is relevant to social, cultural, and economic development of its associated countries. Trans-Himalayan connectivity, political transition of Nepal and property right of Nepal is the leading challenges for BRI implementation in Nepal.

The Belt and Road Initiative as a Gateway to the Sea for Land-Locked Countries: With Reference to Nepal

“…In its broadest description, the BRI might cover up to 65 nations, 4.4 billion people, and account for ~30% of the global gross domestic product (GDP; Chen, Sui, et al, 2019). Nepal signed a memorandum of understanding (MoU) with China and arranged for cooperation under the BRI in 2017 (Adhikari et al, 2019). OBOR is part of a policy to gain benefit over China's neighbors and other nations through the region.…”

“…In addition to TTA, Nepal and China signed 10 other contracts related to Nepal's construction and economic development plans. As a groundwork of TTA agreement, Nepal agreed and signed the BRI with China in 2017 (Adhikari et al, 2019).…”