Will US, India benefit from Nepal’s latest political shifts at China’s expense?

One member of Nepal’s new ruling coalition, former PM Sher Bahadur Debua has been dubbed ‘pro-India’ by the Chinese nationalist tabloid Global Times

New alliance takes over after former PM KP Sharma Oli, known for his stance against New Delhi and proximity to Beijing, lost his position of power

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Nepal’s Prime Minister Pushpa Kamal Dahal (right), has formed an alliance with with form PM Sher Bahadur Deuba. Photo: Reuters

Published: 1:10pm, 24 Mar 2023Updated: 1:31pm, 24 Mar 2023

The political reshuffling in Nepal is likely to benefit the United States and India but could deal a blow to China’s hopes of boosting its diplomatic sway in the Himalayan nation, analysts have said.

The realignment of parties in Nepal’s ruling alliance saw the bloc led by former Prime Minister KP Sharma Oli, known for his aggressive rhetoric against New Delhi and proximity to Beijing, losing his position of power.

Instead, former leader Sher Bahadur Deuba’s Nepali Congress (NC), known to pursue stronger ties with India and the US, has stepped in to back the government of the country’s current Prime Minister Pushpa Kamal Dahal “Prachanda”.

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Former communist rebel leader Prachanda becomes Nepal’s new prime minister

In December, Oli and Dahal, both Communist leaders, formed an alliance that analysts said would boost Chinese presence in Nepal.

In the past, Oli has repeatedly taken on India, with some Chinese tabloids referring to him as a “pro-China” leader. In New Delhi’s foreign policy circles, there had been jitters about what the Dahal-Oli alliance would mean for India’s strategic interests.

But the alliance lasted less than three months and the NC, led by Deuba, dubbed by the Chinese nationalist tabloid Global Times to be “pro-India”, is in power, bringing relief and a fresh opportunity to India to consolidate its presence in the country, analysts said.

An alliance between Nepal’s current Prime Minister Pushpa Kamal Dahal (right) and its former leader KP Sharma Oli faltered. Photo: AFP

A growing Chinese presence

Nepal has witnessed a series of high-profile visits since the end of December, when Dahal, backed by Oli, was sworn in as the country’s prime minister.