Wen Jiabao’s visit came about at a time when China is concerned about the ongoing political instability in Nepal and is looking for new political partners after the fall of the monarchy.

The win-win situation for India and China lies in respecting the ‘buffer-status of Nepal’ which will also ensure political stability in Nepal.

The political crisis that triggered off in Nepal with Prime Minster Prachanda’s resignation yet again indicates not only the trials and tribulations of a fledgling democratic process but also points to the geopolitical vulnerability of the country sandwiched as it is between the two Asian giants. While India considers Nepal a part of its sphere of influence, it is increasingly being challenged by China’s inroads into Nepal. In fact, the growing Nepal-China nexus should be seen in the context of India-China power competition in Asia.

There has been a major shift in China’s foreign policy towards Nepal since the Maoist ascendance to power. China had earlier adopted a policy of ‘non-intervention’ in the internal matters of Nepal and largely stayed out of Nepalese internal politics. However, the demise of the monarchy and the ascendance of political parties have forced China to reshape its Nepal policy. Moreover, frequent protests by Tibetans in recent months alerted the Chinese to the possibility of the China-Tibet border being misused.

“[China] feels that the Himalayas alone in this nuclear age are not enough to guarantee its national security, especially in view of Tibet’s strategic location. [It], therefore, ideally wants a China of small, preferably pro-Chinese, neighbours on the cis-Himalayan region separating the two Asian giants.”

- Dawa Norbu