Trade deficit with China widens

The country’s trade deficit with China is widening.
“Nepal has been incurring heavy losses in trade with China,” Prime Minister Madhav Kumar Nepal said inaugurating the 11th annual general meeting of Nepal-China Chamber of Commerce and Industry (NCCCI) here today.
“The increasing trade deficit is a matter of great concern for a small country like Nepal,” he said, adding that the government has introduced some export promotional programmes to reduce the trade deficit. “But government’s lone effort could not bridge the widening trade gap and China and private sector’s active help is essential.”
“Nepal has many opportunities for foreign investment on different sectors such as hydropower, mines, Agriculture, pharmaceuticals, finances, IT, Education and tourism,” said NCCCI president Dr Rajesh Kazi Shrestha.
“China is one of the important trade partners of Nepal
and our trade is in increasing trend, he said, adding that though, in the fiscal yeat 2008-09 Nepal posted a trade deficit of $442 million with China.
Welcoming the 60-member Chinese delegation led by China Council for Promotion of International Trade (CCPIT) Wan Jifei, he requested to explore market opportunities in Nepal.
On the occasion, China’s ambassador to Nepal Qiu Guohong said that bilateral trade between Nepal and China has increased by 36 per cent in the first 10 months of this fiscal year compared to the same period last year.
“The arrangement of duty-free access to some Nepali products will help promote bilateral trade,” he said,
Similarly, CCPIT chief Jifei said that Nepal should try to bring in foreign investment in agriculture, infrastructure, tourism and hydropower sectors as many Chinese companies are ready to invest in these sectors.
Nepal being situated between two rapidly growing economic powerhouses — China and India — could be used as a transit route not only to promote bilateral trade but regional trade as well.
“Nepal is celebrating Nepal Tourism Year 2011 and the government of China has declared Nepal as its outbound tourist destination,” Shrestha said, “but the arrival of Chinese tourists is not satisfactory.”
“The existing frequency of air flights must be increased and airlink must be added in major cities of China like Beijing, Shanghai and Kunming to facilitate and attract more Chinese tourists,” he said, adding that there is a need of establishing the Nepali counselor office in major cities of China like Guangzhou, Kunming, and Chengdu.
Permier Nepal on the occasion also inaugurate NCCCI Directory and facilitated three institutions — Tibet House, Air China and Singhal Group — for their contribution in the bilateral trade.