A recent report titled ‘China’s ‘New Great Wall’ Casts a Shadow on Nepal’—reveals some telling and concerning facts about China’s ongoing expansionist activities in the Himalayas, particularly along the Nepal-China border. The report highlights the alarming case of Humla, a frontier village in Nepal now confronted with Chinese barbed wire fences and ongoing encroachment. This encroachment, primarily involving the construction of border villages overnight, reflects China’s unprecedented strategy under Xi Jinping’s leadership. The country has intensified efforts to “assert its territorial claims in disputed areas along its periphery.”
In addition to its territorial claims, the report adds, China’s security forces are pressuring ethnic Tibetan Nepalis in the Humla district “not to display images of the Dalai Lama.” China views the cultural and religious ties between Tibet and Nepal as a threat to stability in the region. It has been trying to weaken the Dalai Lama’s significant influence in Nepal and sway over local communities by promoting Chinese Buddhism.
China’s claims on Nepalese territory should not be seen as a standalone event; in just the last five years, Beijing has aggressively and systematically laid claim to Ladakh, Nepal, Sikkim, Bhutan, and Arunachal Pradesh.
From Bhutan to Ladakh
In Bhutan—the only country in South Asia bordering China that does not have any diplomatic ties with Beijing—China has laid claim to the Buddhist cultural area of Beyul Khenpajong in the north. In 2023, satellite images showed China constructing major townships there. Besides the Beyul Khenpajong area, China’s territorial claims include Doklam in the west and the Sakteng Wildlife Sanctuary in the east.
China and Bhutan have been negotiating a border resolution since 1984, when the two neighbours formally discussed their border issues for the first time. The last, or 25th, round of the boundary talks took place in October 2023 when Bhutan’s then-foreign minister, Tandi Dorji, travelled with a delegation to Beijing. The sides agreed to a “Three-Step Roadmap,” but did not reveal the details of it.
The Galwan Valley in India’s Ladakh saw a deadly clash between Indian and Chinese security forces along the Line of Actual Control (LAC) in June 2020, which claimed lives on both sides. The situation at the LAC remains tense despite multiple rounds of talks between leaders, military officials, and technical teams from the two countries. The standoff underscores that without meaningful progress, the risk of escalation remains, making a lasting resolution urgent for regional stability.
But what defines China’s aggressive behaviour in its Himalayan underbelly, mainly under Xi Jinping’s presidency?
A lot of this can be traced to an important speech delivered by Xi Jinping at the Peripheral Diplomacy Work Conference in Beijing in October 2013. In his address, the newly appointed president emphasised the strategic imperative for China to secure a favourable “peripheral environment,” which is often seen as the key inspiration behind prioritising neighbours in the periphery in multi-billion-dollar initiatives like the 21st Century Maritime Silk Road and the Belt and Road Initiative, where Beijing could camouflage its territorial intents. In his speech, Xi underscored China’s ambition to consolidate influence in its periphery, aligning closely with its broader geopolitical ambitions.
It is often argued that this speech also provided the basis for Xi’s broader foreign and security policy toward China’s neighbours after he became president in March 2013.
Elevating ties with peripheral neighbours
For instance, at the conference, Xi invoked the idea that China “should strive to promote regional security cooperation,” including elevating ties with peripheral neighbours. Against this backdrop, China upgraded its diplomatic ties with Nepal in 2019 from ‘Comprehensive Partnership of Cooperation Featuring Ever-lasting Friendship’ to ‘Strategic Partnership of Cooperation Featuring Ever-lasting Friendship for Development and Prosperity.’
By adding the word ‘strategic’, China formalised the security component in the bilateral ties with Nepal, which had already begun with the first joint military exercise named Sagarmatha Friendship 2017 in Nepal. So far, the Nepal Army and the People’s Liberation Army (PLA) have held four rounds of such exercises, the most recent of which took place in September 2024 at a training camp in southwestern China’s Chongqing municipality.
The push for strategic partnerships with neighbours was evident during Xi’s historic visit to Nepal in October 2019—marking the first visit by a Chinese president since Jiang Zemin in 1996—when Xi sought to sign an ‘extradition treaty’ with Nepal. The communist-led government under Prime Minister KP Oli reportedly introduced the treaty for consideration, but withdrew it at the last moment following objections from civil society and international human rights organisations.
Critics argued that the treaty could jeopardise the future of thousands of Tibetan refugees who arrived in Nepal after 1990 and had not been issued refugee cards. However, in the joint statement, China “expressed hope for an early conclusion of the Treaty on Extradition.” A treaty of this kind would help China legally pressure Nepal to curtail the activities of Tibetan refugees, who have often been active in advocating for a “free Tibet.”
Similarly, China is pressuring Bhutan to advance the process of establishing diplomatic relations. If established, this would represent a symbolic victory for China over India in the strategically significant Himalayan region. Such a move would undermine India’s influence in Bhutan—a country where India has historically played a crucial role in shaping foreign policy—and bolster China’s broader regional strategy of countering India’s presence along its borders.
There remains little doubt that in pursuit of Xi Jinping’s vision for rejuvenating China, the drive to assert territorial claims under the banner of cultural and civilisational revival remains unabated. This ambition poses significant challenges to smaller neighbours like Nepal and Bhutan, who must navigate a precarious geopolitical landscape. As China expands its reach, these nations face the dual threat of sovereignty erosion and losing their respective cultural identities.
