U.S. Interests and Presence in Nepal

By Muna Chand

The primary U.S. interests in Nepal can be understood from the perspectives of geopolitical competition, control over China’s influence, and the Indo-Pacific strategy. Here’s a detailed analysis:

Main U.S. Interests:

Countering China’s Influence: Nepal is a member of China’s Belt and Road Initiative (BRI), which the U.S. views as a “debt trap diplomacy.” The U.S. aims to keep Nepal away from BRI. In 2022, Nepal accepted the Millennium Challenge Corporation (MCC) agreement, an alternative to BRI, with the U.S. offering a $500 million grant as an example.
Indo-Pacific Strategy (IPS): The U.S. Indo-Pacific Strategy works against China’s military/economic expansion to promote a “free and open Indo-Pacific.” As Nepal borders China, U.S. presence in the region serves as geopolitical pressure against China.
Security Cooperation: Nepalese soldiers receive training, military equipment, and emergency assistance through the U.S. Indo-Pacific Command (US-INDOPACOM), which aims to give Nepal security autonomy from both China and India. The U.S. also seeks a military presence in the region.
Promoting Democracy and Human Rights: The U.S. works to enhance democracy, media freedom, and democratic values in Nepal, indirectly competing with China’s model and striving to prevent Chinese influence.

Why is the U.S. Increasing Its Presence in Nepal?

Geographical Location: Nepal acts as a “buffer zone” between India and China, making it a highly sensitive area militarily. The U.S. wants to increase its influence to strategically challenge both neighboring countries.
Resource Attraction: Nepal’s hydroelectric potential (43,000 MW), Himalayan minerals, and biodiversity are attractive to U.S. companies. For example, American companies are investing in smart grids, data centers, and new energy technologies in Nepal.
China’s Increasing Influence: China is constructing railways, highways, and internet infrastructure in Nepal, which the U.S. and India perceive as a threat to their techno-strategic dominance.
Cybersecurity: Nepal’s data security is weak, and the U.S. seeks to enhance cybersecurity cooperation, aiming to reduce the influence of Chinese companies like Huawei.

Controversies Surrounding U.S. Presence:

MCC Agreement: The MCC agreement faced accusations within Nepalese political circles of being an “American military agenda,” causing political turmoil. However, there was a consensus to pass the MCC in efforts to prevent Chinese influence, which is now in its implementation phase.
Challenge to Sovereignty: Some view American aid as “neo-colonialism,” interpreting MCC and US-INDOPACOM agreements this way.
India-China Reactions: Both India and China see Nepal’s closer relationship with the U.S. as a threat to regional balance. Political pressures are being created to limit American presence in Nepal. The current political developments in Nepal can be seen as a result of these pressures.

Opportunities and Risks for Nepal:

Opportunities: U.S. cooperation could boost economic development, technology transfer, and education. Nepal could reduce dependency on India and China by expanding alternative partnerships.
Risks: Nepal might become a “proxy battleground” in the U.S.-China Cold War.
Militarization: U.S. military cooperation could escalate regional tensions.

Conclusion:

The U.S. seeks to strengthen its presence in Nepal primarily to counter China’s growing influence. This involves economic assistance, security partnerships, and promoting democratic values. However, Nepal must handle this carefully, as foreign power competition could jeopardize its sovereignty and stability.

Recommendation:

Nepal should adopt a balanced foreign policy, maintaining equal relations with all countries while focusing on internal capacities such as economic, technological, and security advancements.