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China congratulates new Nepal PM Pushpa Kamal Dahal

Pushpa Kamal Dahal is now Nepal's 24th Prime Minister

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Nepals newly elected Prime Minister Pushpa Kamal Dahal, also known as Prachanda, waves towards the media after he was elected Nepals 24th prime minister in 26 years, in Kathmandu, Nepal, August 3, 2016
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China on Thursday congratulated "Chairman" Prachanda for taking over as Nepal's new Prime Minister, saying Beijing is ready to further "generation-to-generation" bilateral ties, amid concerns the Maoist chief might distance from his predecessor's pro-China stance.

"We have noted that Chairman Prachanda has been elected as the new prime minister of Nepal and we congratulate him on that," Chinese foreign ministry spokesperson Hua Chunying said. "As a close friend and neighbour, China stands ready to work with Nepal to follow through with the consensus reached between the two sides, expand mutually beneficial cooperation and move forward China-Nepal comprehensive partnership for cooperation featuring generation-to-generation friendship," she said in a statement.

The election of Chairman of the Unified Communist Party of Nepal (Maoist) Pushpa Kamal Dahal, alias Prachanda, replacing the pro-China K P Sharma Oli has raised anxieties in Beijing over the return of India's influence in the Himalayan country and the fate of a number of connectivity projects worked out by his regime to reduce Kathmandu's dependence on New Delhi.

"Once Prachanda takes power, he is bound to rectify Oli's pro-China tendency when in government and take India's interests into account, as India is sour about losing its grip on Nepal," an article in the state-run Global Times published on July 29 had said. "The fixed agreements between China and the Oli government are unlikely to be changed, or it will deal a heavy blow to bilateral ties, which is too much for the new government to bear," it said.

"Friendly China-Nepal ties benefit the people of both countries, but that relationship may be affected by the possible lifting or resumption of an oil embargo India has imposed on Nepal, following the resignation of Oli," Wang Dehua, director of the state-run Institute for Southern and Central Asian Studies told Global Times on July 26.

"It is very likely that India was behind Oli's resignation because Oli had signed several deals during his State visit to China in March, which most likely irritated India," Wang Dehua, director of the Institute for Southern and Central Asian Studies at the Shanghai Municipal Centre for International Studies said.

Wang said a politically stable Nepal could eliminate the border security concerns for both India and China. And a positive, cooperative Sino-Nepalese relationship is in India's interests. During his visit here Oli signed the Transit Transport Agreement (TTA) to improve the connectivity between Nepal and Tibet in a bid to end decades-old dependency on India for daily supplies. Beijing in a strategic move has also agreed to extend the train link in Tibet to Nepal to improve the connectivity by road and rail.

China sent large oil supplies to Kathmandu during the border blockade imposed by the agitating Madhesis, mostly of Indian-origin, opposing the new constitution. 

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