ABSTRACT
This chapter examines evolving dimensions of Chinese engagement with Nepal in the context of the Belt and Road Initiative (BRI). After briefly reviewing the Nepal-China relations, the chapter empirically analyses the BRI projects in Nepal. While emphasising on economic benefits of its investments in various projects under BRI, China has masked the strategic component of its ventures. Though the BRI began with much optimism and fanfare in Nepal, the projects remain almost a non-starter on the ground or have witnessed very slow progress. The chapter argues that, gradually, buoyancy is replaced by concerns over the Chinese debt trap and Nepal’s preference for grants over loans. These factors would only hinder the progress of the projects in the foreseeable future.
