Kathmandu: The signing of the Millennium Challenge Corporation (MCC) agreement between Nepal's then Finance Minister Gyanendra Bahadur Karki and MCC CEO Jonathan Nash in Washington, D.C. on September 14, 2017, marked the beginning of a fierce geopolitical struggle in Nepal.

The agreement, which offered a nearly Rs 60 billion subsidy from the US, allocated Rs 45 billion for international transmission lines and the remainder for road maintenance and other purposes. Additionally, Nepal was expected to invest an extra Rs. 15 billion in the project. Although the agreement was signed, China's vehement opposition to the MCC came to the forefront.

China tried to sabotage the Millennium Challenge Corporation (MCC) project in Nepal by spreading misinformation and fear-mongering. The MCC project, which would have funded infrastructure development in Nepal, was seen as a threat to China's Belt and Road Initiative (BRI).

China spread rumors that the MCC project was a front for the US military to establish a presence in Nepal, and that it would saddle Nepal with debt. These rumors were false, but they were effective in sowing confusion and opposition to the MCC project.

China also tried to influence Nepali media and society to oppose the MCC project. They offered financial incentives and other forms of support to Nepali media outlets, and they cultivated relationships with Nepali politicians and opinion leaders. China's efforts were successful in delaying the MCC project and raising doubts about its legitimacy.

The MCC saga is a reminder of the importance of media integrity and national sovereignty. It is also a warning about the dangers of foreign interference in domestic affairs. Nepal is a sovereign nation, and it should be free to make its own decisions about its development. China should respect Nepal's sovereignty and stop trying to interfere in its internal affairs.

China's Reaction and Geopolitical Concerns

China reacted aggressively through media channels to prevent the MCC from taking root in Nepal. It became evident that China perceived the MCC as a potential instrument through which the US, with the assistance of India, could use Nepali land to further their military strategy aimed at encircling China. Consequently, China used all available means to thwart the project's approval in the Nepali parliament, positioning the MCC as a threat to its geopolitical interests.

Impact on Nepali Leadership and Geopolitical Pressure

The Nepali leadership came under considerable pressure as they grappled with the competing influences of China and the US. China's media narratives propagated the notion that the MCC would lead to American intervention and undermine Nepal's sovereignty. This messaging resonated with a significant portion of the population, garnering public opposition against the MCC. Chow Seuping, a former Nepal head of Xinhua, went so far as to label the MCC a "deadly project" in his book, echoing China's concerns.

China's Intentions and Impact

China's intentions were evident in its concerted efforts to dissuade Nepal from approving the MCC, as seen through the tactics used to sway public opinion. This media-driven approach, combined with diplomatic pressure, created a challenging environment for Nepal to navigate. China's aim to prevent American influence from gaining a foothold in Nepal's infrastructure projects was evident in its campaign against the MCC.

US Response and Warning

The US, recognizing China's involvement, raised alarms about the spread of false information against the MCC in Nepal. A spokesperson for the US State Department accused China of instigating and facilitating a campaign to disseminate misinformation against the project. The US also issued a cautionary statement to Nepali parliamentarians, hinting at the potential consequences of succumbing to external influence.

Geopolitical Implications and Tensions

The MCC saga underscores the intricate geopolitics that often shape smaller nations' decision-making processes. It highlights how Nepal's foreign relations and policy choices are influenced by larger players on the global stage. With the US warning Nepal of reconsidering its policy if the MCC is not approved, and China's aggressive stance against it, Nepal finds itself in the crossfire of geopolitical maneuvers.

China's Influence on Nepali Media and Shaping Nepal's Policy

Amidst these pressures, China's influence on Nepali media and its impact on shaping Nepal's policies have raised significant concerns. A video posted on February 27, 2022, on the Facebook page of the Nepali online portal Nepal.CRI.CN, operated by China Radio International (CRI), highlighted this influence. In the video, Chinese reporter Lalima, speaking in Nepali, critiques the MCC project and its potential consequences.

Lalima's Arguments and China's Narrative

Lalima outlines four reasons why the MCC project is deemed dangerous for Nepal. First, projects aided by the MCC are granted tax exemptions, undermining Nepali tax jurisdiction. Second, the Nepali government lacks authority over foreign workers violating local laws, akin to situations with American troops in Japan and South Korea. Third, the US conducts MCC project audits without Nepali oversight. Fourth, the US can unilaterally terminate the MCC, leaving Nepal powerless. Lalima contends that the MCC's unequal agreements jeopardize Nepal's sovereignty.

China's Intentions and Geopolitical Strategy

China's intentions are evident in its efforts to dissuade Nepal from MCC approval, seen through media-driven tactics. Coupled with diplomatic pressure, this approach creates a challenging environment for Nepal. China seeks to prevent US influence in Nepali infrastructure projects, making the MCC a geopolitical battleground.

US Response and Warning

The US, aware of China's involvement, warns of misinformation spread against the MCC in Nepal. A State Department spokesperson accuses China of instigating misinformation campaigns. A cautionary statement to Nepali parliamentarians emphasizes the repercussions of yielding to external influence.

Geopolitical Implications and Nepal's Dilemma

The MCC's complexities highlight Nepal's precarious position. Navigating China's influence and US warnings poses challenges. Nepal's policy choices and sovereignty are at stake. Geopolitical dynamics remind Nepal that global power plays significantly impact domestic and foreign affairs.
(Summary of a Research Undertaken by the Center for Social Inclusion and Federalism: China's Influence on Nepali Media and Shaping Nepal's Policy. The study, conducted by Baburam Biswakarma and JB Pun Magar.)