China
China Adjusts Strategy in Nepal Following Oli’s Downfall
In September 2025, youth-led protests forced Nepal’s pro-China PM Khadga Prasad Sharma Oli to resign, marking a setback for Beijing. China aims to maintain influence amid shifting local dynamics.
Khadga Prasad Sharma Oli’s Resignation and Its Impact
The resignation of former Nepali Prime Minister Khadga Prasad Sharma Oli in September 2025, in the wake of youth-led protests, poses a significant challenge for China’s interests in the region. Oli, noted for his alignment with Chinese initiatives, had been a crucial advocate for projects under the Belt and Road Initiative (BRI). His departure highlights a potential shift in Nepal’s political landscape, compelling Beijing to recalibrate its strategy while maintaining ties with the interim leadership.
Protests and Political Dynamics
Mass protests led by Generation Z in Nepal prompted Oli’s resignation, fueled by demands for democratic reforms and accountability. Although Beijing views Oli’s exit as a political setback, it is not seen as a definitive change in its engagement with Nepal. China aims to adapt to evolving local dynamics while preserving its influence, emphasizing the need for political stability in the country.
Future of China-Nepal Relations
Oli’s tenure had fostered a close relationship between Nepal and China, marked by numerous agreements and high-level visits. His commitment to BRI projects, including the Trans-Himalayan Railway, underscored this collaboration. Even post-resignation, China continues to express support for Nepal, urging all political factions to prioritize stability and restore social order in the aftermath of the protests.
