Volume 5, Issue 1, April 2017
Articles

China South Asia Connectivity: Reflections on Benefits of OBOR in Nepal from International Law Perspective

Yubaraj Sangroula
Executive Director of Kathmandu School of Law and Former Attorney General of Nepal
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Published 2017-04-30

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Sangroula, Y. . (2017). China South Asia Connectivity: Reflections on Benefits of OBOR in Nepal from International Law Perspective. Kathmandu School of Law Review, 5(1), 1–38. Retrieved from https://kslreview.org/index.php/kslr/article/view/1009

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References

1 D.R. Regmi, Ancient Nepal, Rupa & Co in association with Dilli Raman Regmi Memorial Foundation, 2007, New Delhi, p.8.

2 Ibid.

3 Ibid.

4 Ibid.

5 Chunnigham, Ancient Geography of India, p.445 cited in D.R. Regmi, Ancient Nepal, Rupa & Co in association with Dilli Raman Regmi Memorial Foundation, 2007, New Delhi, p.2.

6 K. P. Jayasawal, "Chronology of the History of Nepal B.C. 600 to A.D. 800 in Journal of Bihar and Orrisa Research Society (JBORS) XXII (September 1936), pp. 157-264.

7 Kirat dynasty's 26 kings ruled Nepal. They ruled over one thousand years. The first Kiratruller was Yellung Kirat, who overthrew the last king of Mahispapala from the region beyond the River Dudhkosi which extended as far as Bhutan to the east. They probably took over Kathmandu; See, Rishikesh Shaha, Ancient and Medieval Nepal, Ratna Pustak Bhandar, Kathmandu, 1992, p. 7.

8 Ibid (n.4), p.6.

9 Rishikesh Shaha, Ancient and Medieval Nepal, Ratna Pustak Bhandar, Kathmandu, 1992, p. 25.

10 Ibid.

11 Fa Xian was the first Chinese monk to visit Nepal. He visited Nepal in between 399 and 413 (AD). He came to Nepal via Ghandhara (present Peshawar) and Kashmir. Nepal, as revealed by some historical evidence, was in that time bordered Kashmir as its western frontier. The Bharatvarsa, south to Nepal, was divided into many dozens of independent Kingdoms, the Magadha being the most dominant one. The modern India was absent in the history, as the modern India was a product of the colonial regime in which the East India Company erected a 'nation called India for the purpose of centralizing the government for convenience of tax collection'. The second Chinese Scholar to visit Nepal was Xuan Zang, who is said to have spent considerably longer period of time in Nepal and studied the dhyana Buddhism (meditative Buddhism). When he was returning to China, Yunan, a Chinese mission of twenty men led by Li I-paio and Wang Shuan Tse was head to Nepal by a new route which had never before been used for the journey between Nepal and China. This route is Kerung pass. This is how Nepal and China got into cultural a deeply entrenched cultural tie. No other country in South Asia has such unique tie with China, nor does China have such tie with any other country in South Asia. However, this unique historical relation is not emphasized by the both countries, which is unfair.

12 Ibid (n. 9), p.6.

13 China and Nepal share the root of the culture. The naked observation captures some similarities; one such being the architectural structure of temples in China and Nepal. Multilayered roof with pagoda style is a popular culture of constructing temples in both China and Nepal. The study in this regard has, however, not been done on the both sides.

14 Sundar Bhattrai, "Connectivity between China and South Asia", Concept Paper, Conference on Connectivity between China and South Asia in the Perspective of OBOR Initiative, Kathmandu School of Law, 17th March, 2017.

15 See, for more detail, Michael C. Brannigan, The Pulse of Wisdom, Wadsworth/Thomas Learning, 2000, Belmont, USA, pp. 31-33.

16 D. R. Regmi, Ancient Nepal, (1st Ed.) Calcutta, Firma K.L. Mukhopadhya, 1960, p. 151.

17 The inter-cultural exchanges and communication among Nepal, China and India is indispensable. The people of three countries have fashioned a cultural tie which is unique and penetrating. Each has influenced the development of other's culture and way of life. Huge population both in Nepal and India share the origin with Chinese population, whereas vast population of China holding Buddhist faith considers Nepal and India as places of worship. On the other hand, Mount Kailash and Mansarovar Lake are holly places for Hindus of Nepal and India. This inter-connectedness requires flourishing as milestones for fostering inter-cultural communication further. See Jiang Rui and Han Zhihong, 'Culture as the Bridge to Promote Friendly Relations among China, Nepal and India--Reflections in the Context of the 'Belt and Road'. Paper presented in the 'China-Nepal Think-Tank Conference 2017, organized by Xinhua News Agency, Kathmandu, Nepal. 17-18, January, 2017, p. 5.

18 Ibid (n.12), p. 18.

19 Ibid, p. 20; the group of scholars was attacked by Arjuna (Arlo-nashun in the Chinese Text). Wang Shuan Tse and one of his colleagues managed to escape and returned to Nepal. King Nrendradeva was ruling Nepal then, who was assisted by the ruler of Tibet to gain his reign back from his uncles. Nerendradeva and Shrongtsan Gyampo, the ruler of Tibet, formed a combined military to attack the ruler of Magadh, the troop was able to rescue the other surviving emissaries. The friendship between Nepal and China was thus formally and firmly established.

20 Ibid (n.16), p. 177.

21 Ibid (n.18), p.19.

22 Ibid.

23 About this time Nepal learned art of paper making from China and handmade finest quality paper constituted one of the merchandises to export to India besides musk oil, orpiment, blankets and other woollen goods to India and beyond; Rishikesh Shaha, Ancient and Medieval Nepal, Ratna Pustak Bhandar, Kathmandu, 1992, p. 21

24 Ibid (n.8), p.18.

25 Sanskrit was the medium of higher education and education was fairly widespread among the people. The astrology and astronomy were rich. Nepal had developed skill to draw up calendars based on the calculations of the various phases of moon. This was also a popular practice in China. See, Ibid, p. 21.

26 According to some historical annals, Kaji Bhim Malla attacked Tibet and forced Tibetan rulers to accept joint authority over Tibet by a treaty. Ram Shaha of Gorkha was another ambitious king. He also invaded Tibet and controlled the main trade route from Tibet to Nepal. Pratap Malla attacked Gotkha's Dambar Shaha and obtained his control over Kerung and Kuti from Gorkha. From the description of Kapuchhino priests, the goods of Nepal were in great demands in Tibet. Most importantly, Kathmandu was responsible to mint golden and silver coins for Tibet, and from this Nepal obtained substantial benefits. The trade of Nepal with Tibet was thus main source for rich economy of the Kathmandu Valley; See, Rishikesh Shaha, Ancient and Medieval Nepal, Ratna Pustak Bhandar, Kathmandu, 1992, pp.73-90.

27 For description in detail in this regard, see, Yubaraj Sangroula, "Past and Present of Nepal India Relations: A Critical Examination of Problems, Challenges and Prospects" in Yubaraj Sangroula and Rohit Karki (eds.) Geo-Strategic Challenges to Nepal's Foreign Policy and Way Forward, Kathmandu School of Law, Kathmandu, 2015, p. 92.

28 Whelpton John, A History of Nepal, Cambridge University Press, London, 2007, p.39.

29 For detailed description, see, Shaha (n 9) pp. 7-145.

30 See Jiang Rui and Han Zhihong, 'Culture as the Bridge to Promote Friendly Relations among China, Nepal and India--Reflections in the Context of the 'Belt and Road'. Conference Paper, China-Nepal Think-Tank Conference 2017, Xinhua News Agency, 17-18, January, 2017, p. 6.

31 For detailed accounts, see, Jagadish Sharma, Nepal: Struggle for Existence, CommInc ICT Private Limited, Kathmandu, 2006.

32 The OBOR is an implementing vehicle of Silk Road and Maritime Silk road concepts. On March 28, 2015, the Chinese National Development and Reform Commission, Foreign Ministry and the Ministry of Commerce collectively released an official document clarifying the concept of OBOR. The document entitled "Vision and Actions on Jointly Building the Silk Road Economic Belt and the 21st-Century Maritime Silk Road" provided the following coverage of the geographical areas: (a) The Silk Road Economic Belt mainly goes from China through Central Asia, (b) Russia to Europe (Baltic Sea), (c) from China through Central Asia, West Asia to the Persian Gulf and the Mediterranean, (d) from China to South East Asia, South Asia and the India Ocean, (e) the 21st-Century Maritime Silk Road mainly starts from China's coastal ports through the South China Sea to the South Pacific; See for more detail, Wang Yiwei, The Belt and Road Initiative: What will China Offer the World in Its Rise, New World Press, 2016, p.83.

33 See, Li Junru, What Do You Know About the Communist Party of China?, Foreign Language Press, 2011, pp.17-20.

34 Wang Chen, Minister of State Council Information Office of the People's Republic of China. Preface to the Book by Wang Guoliang et al, (eds.) Scientific Development in China: Volume Summary, China in the last Ten Years, People's Publishing House, 2012.

35 The concept of economic growth is supplanted by a concept of scientific development, which targets the happiness of people, by realizing the needs of people. See for detail elaboration, Li Junru, What Do You Know About the Communist Party of China? Foreign Language Press, 2011.

36 Wang Guoliang et al, (eds.) Scientific Development in China: Volume Summary, China in the last Ten Years, People's Publishing House, 2012.

37 Xi Jinping, The Governance of China, Foreign Language Press, 2014, pp.315-319.

38 Ibid (n.37).

39 Ibid (n.37).

40 Wang Yiwei, The Belt and Road Initiative: What will China Offer the World in Its Rise, New World Press, 2016, p.83.

41 "The Belt and Road Initiative will transcend the Marshal Plan. As early as January 5, 2009, The New York Times tagged China's going 'global strategy as the Marshal Plan for Beijing. This rhetoric has become more popular after the Belt and Road Initiative was proposed. As a matter of fact, the initiative, while not being a Chinese Marshal Plan, has gone beyond the level of Marshal Plan."; See, Wang Yiwei, The Belt and Road Initiative: What will China Offer the World in Its Rise, New World Press, 2016, p.39.

42 See 'Culture as the Bridge to Promote Friendly Relations among China, Nepal and IndiaReflections in the Context of the 'Belt and Road'. Conference Paper presented, China-Nepal Think-Tank Conference 2017, Xinhua News Agency, Kathmandu, Nepal. 17-18, January, 2017, p. 1.

43 Ibid.

44 China borders 5 of the 8th South Asian countries. The border covers almost 5000 km. It is therefore generally accepted across China that the region is in fact a gateway for China's "Western-oriented opening-up" and the west-ward corridor development. China and India borders suffers from political issues, and thus opening-up of the Indo-China border needs to be awaited for. China-Afghanistan and China-Pakistan borders are difficult ones. China and Bhutan do not have diplomatic tie. Hence, Nepal is a bridge between China and South Asia. See for detail, Li Tao, "From Yam to Bridge: China-Nepal Relations from OBOR. Perspective", Conference Paper presented, China-Nepal Think-Tank Conference 2017, Xinhua News Agency, Kathmandu, Nepal. 17-18, January, 2017, p. 1.

45 See 'Culture as the Bridge to Promote Friendly Relations among China, Nepal and IndiaReflections in the Context of the 'Belt and Road'. Conference Paper presented, China-Nepal Think-Tank Conference 2017, Xinhua News Agency, Kathmandu, Nepal. 17-18, January, 2017, p. 2.

46 The intensity of cultural communication among Nepal, China and India in the past was wider and extensive. According an ancient legend, Manjushree visited Nepal from Wutai mountain of China. He cut off the gorge at Chovar and let the water of Kathmandu go out, and thus making it’s a good for settlement. Chinese monks or scholars visited Nepal. Fa Xian, Xuan Zang and Jiya visited Nepal while Nepalese monk Buddhabhadra (known in China as Jue Xian) visited Nepal. Nepalese great artist Araniko (known as Anigou in China) lived in China more than 40 years and led the construction of many Buddhist temples in China. Buddhism has been one of the linking threads for people Nepal, China and India. The modern days' frequency of communication is greater. See Jiang Rui and Han Zhihong, 'Culture as the Bridge to Promote Friendly Relations among China, Nepal and India--Reflections in the Context of the 'Belt and Road'. Conference Paper presented, China-Nepal Think-Tank Conference 2017, Xinhua News Agency, Kathmandu, Nepal. 17-18, January, 2017, p. 5.

47 In May, 2015, the Indian Prime Minister Narendra Modi, during his visit of China, made a positive response to the economic corridor initiated by China and suggested to form a joint research team to discuss this plan. The development has been positively moving ahead, as Dr. D.J. Padian, an Indian expert, has now been appointed as the Vice president of the AIIB. See, www.aiib.org/html/2016/NEWS_0205/19 html.

48 See, Di Fangyao, "Strategies and Suggestions on the Construction of China-Nepal-India Economic Corridor", Conference Paper presented, China-Nepal Think-Tank Conference 2017, Xinhua News Agency, Kathmandu, Nepal. 17-18, January, 2017, p. 3.

49 Ibid (n.48), p. 2.

50 See, S. Mahnedra Dev, "Economic Reform, Poverty and Inequality", Indira Gandhi Institute of Development Research, Mumbai, March 2016; available at www.igdr.ac.in/pdf/publication/wp-2016-009.pdf, last accessed on 7 March 2017; See also, Partbapartim Pal and Jayati Ghosh, "Inequality in India: A Survey of Recent Trends", DESA Working Paper No. 45/DWP/45/, July 2007; available at www.nabamukti.org/Arunachal%20Reports/Inequality%20India% 2007.pdf, last accessed on 7 March 2017.

51 Ibid.

52 Ibid (n.50), p. 2.

53 Ibid (n.48), p. 3.

54 Ibid

55 Li Tao, "From Yam to Bridge: China-Nepal Relations from OBOR Perspective", Conference Paper presented, China-Nepal Think-Tank Conference 2017, Xinhua News Agency, Kathmandu, Nepal. 17-18, January, 2017, p. 2.

56 Ibid.

57 Ibid (n.49), p. 2.

58 See, Di Fangyao, "Strategies and Suggestions on the Construction of China-Nepal-India Economic Corridor", Conference Paper presented, China-Nepal Think-Tank Conference 2017, Xinhua News Agency, Kathmandu, Nepal. 17-18, January, 2017, p. 2.

59 Ibid (n.40), p.22.

60 Ibid.

61 Ibid.

62 Ibid., p.23.

63 Ibid., p.24.

64 See, Thomas Pogge, World Poverty and Human Rights: Cosmopolitan Responsibilities and Reform; Cambridge: Polity 2002, p. 2.

65 Ibid, p. 98.

66 Ibid (n.64), pp.99-100.

67 See, Thom Brooks, "Is Global Poverty a Crime", p. 2, available online at http://ssrn.org/abstract, last visited October 29, 2011.

68 Document of the United Nations Conference on International Organization, (UNCIO) San Francisco 1945, Vol. 1, p. 554. See also vol.3, p. 355, 366 and vol. 6, p. 430-432.

69 UNCIO (n. 68), vol.3, p. 586.

70 UNCIO (n. 68), vol.10, p. 84.

71 UNCIO (n. 68), vol.3, p. 388.

72 Much of the world was still colonized. Western colonial States were not sincere to the people of the colonized world. They did not treat the people of the colonized parts as ‘equal to that of developed countries’. The sorrow and problems faced by the people of colonized countries were not taken as violation of human rights as such people were not defined as ‘civilized people’. See for detail discourse, Schirijver, van Genugten, Homan, de Waart, 2006, The United Nations of the Future: Globalization with a Human Face. Amsterdam: KIT Publishers, p. 89.

73 Otto Spijkers, ‘Human Rights and Development from an international, Dutch and personal perspective.' Available at http://papers.ssrn.com.

74 Second United Nations Conference on Landlocked Developing Countries, Vienna, 3-5 November 2014.*A/CONF.225/L.1

75 Ibid, para. 21

76 Ibid para 76

77 UN General Assembly, Convention on the Law of the Sea, 10 December 1982, available at: http://www.refworld.org/docid/3dd8fd1b4.html, accessed 13 December 2015.

78 www.roadtraffick-technology.com/projects-highway-network. URL accessed on 7th March 2017.

79 www.loc.gov/law/foreign-news/article/bangladesh-bhutan-india-nepal. URL accessed on 7th March 2017.

80 Kishor Uprety, ‘The transit regime for landlocked states, international law and development perspective’, World Bank, 1818 H Street, NW Washington DC, 2006, pp.127-129.

81 Article 2-The contracting parties shall endeavor to grant maximum facilities and to undertake all necessary measures for the free and unhampered flow of goods , needed by one country from other , to and from their respective territories . 82 Article 4-The contracting parties agree, on a reciprocal basis, to exempt from basic custom duty as well as from quantitative restrictions the import of such primary products as may be mutually agreed upon, from each other.

Article 6 – With a view to facilitating greater interchange of goods between the two countries, the government of Nepal shall endeavor to the maximum extend compatible with their development needs and protection of their industries.

83 Article 1 – The contracting parties shall accord to “traffic-in-transit” freedom of transit across their respective territories through routes mutually agreed upon. No distinction shall be made which is based on flag of vessels, the places of origin, departure, entry, exit, and destination, ownership of goods or vessels.

84 Article 4 - Traffic-in-transit shall be exempt from custom duties and from all transit duties or other charges, except reasonable charges for transportation and such other charges, as are commensurate with the costs of services rendered in respect of such transit.

85 Article 5 - For convenience of traffic in transit , the contracting parties agree to provide at point or points of entry or exit , on such terms as may be mutually agreed upon and subject to relevant laws and regulations prevailing in either country , warehouse or sheds , for the storage of traffic-in transit awaiting customs clearance before onward transmission.

86 Article 7- In order to enjoy the freedom of high seas merchant ships sailing under the flag of Nepal shall be accorded , subject to Indian laws and regulations , treatment no less favorable than that accorded to ships of any other foreign country in respect of matters relating to navigation , entry into departure from the ports , use of ports and harbor facilities , as well as loading and unloading dues , taxes and other levies , except that the provisions of this article shall not extend to coastal trade.

87 Article 6 - Except in cases of failure to comply with the procedure prescribed, such traffic-intransit shall not be subject to avoidable delays or restrictions.

88 Article 3 -Traffic-in-transit shall be exempt from customs duty and from all transit duties or other charges except reasonable charges for transportation and such other charges as are commensurate with the costs of services rendered in respect of such transit.

89 Article 1 - The contracting parties shall accord “traffic-in-transit” freedom of transit across their respective territories through routes mutually agreed upon.

90 Protocol to the transit agreement between Nepal and Bangladesh - With reference to Article 1: It is agreed that the government of people’s republic of Bangladesh shall designate the following points of entry and exit for movement of traffic-in-transit through her ports and other territory ,by all means of transportation: Khulna-Chalna Port, Chitagong port, Biral, Banglabandh, Chilhati, and Benapole.

91 Trade and Payment Agreement (Nepal and china ) Article 7- In order to develop the trade overland between the two countries the two contracting parties agree to utilize the following trading points along their frontiers at Kodari/Nyalam, Rasuwa/keyring, Yari(Humla) and Purang,

92 Article 10 states, “The trade overseas between the two countries shall be, in the case of export from China, on the basis of C.I.F Calcutta or other ports on which both Parties have agreed, or of F.O.B China’s port; and in case of export from Nepal on the basis of F.O.B Calcutta or other port on which both parties have agreed or of C.I.F. China’s port.” 93 Trade agreement with Pakistan, 1982, art 8(3) states, “The government of Pakistan will allow use of warehousing facilities as available from time to time at Karachi port / airport of Nepalese cargo for movement to up-country in Pakistan and for trade with third country.”