Experts discuss China's growing influence in Nepal amid suspended aid

February 26, 2025 | Foreign Affairs: House Committee, Standing Committees - House & Senate, Congressional Hearings Compilation


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Experts discuss China's growing influence in Nepal amid suspended aid
The U.S. House Committee on Foreign Affairs convened on February 26, 2025, to evaluate the missed milestones and unseized opportunities in the East Asia and Pacific (EAP) region over the past four years, particularly under the Trump administration. The meeting focused on the implications of halted aid and the increasing influence of China in the region.

The discussion opened with acknowledgment of the uncertainty surrounding the restoration of U.S. aid, which has significant ramifications for regional stability. Committee members expressed concern about the vacuum created by the cessation of aid and how it has allowed China to expand its reach.

One key point raised was the situation in Nepal, where the potential collapse of the Millennium Challenge Corporation (MCC) compact, valued at $500 million, has opened doors for China to strengthen its political and economic foothold. This development highlights the strategic competition between the U.S. and China in the region, as China has long sought to increase its influence in Nepal.

Additionally, the committee discussed the freeze on cyber tools previously provided to dissidents, including those in China. These tools were essential for secure communication, and their unavailability now poses risks to activists and undermines efforts to promote democracy and human rights.

The meeting concluded with a call for a reassessment of U.S. foreign policy in the EAP region, emphasizing the need to address the challenges posed by China's growing presence and to restore critical aid programs that support allies and promote stability. The committee plans to continue its discussions on these issues in future sessions.

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