China rigorously investing in Nepal's tourism industry 'illegally': Report

China has been involved in illegal investments in neighbouring Nepal's tourism and infrastructure, Khabar Hub reported. This comes despite  Himalayan nation being heavily impacted by COVID-19 pandemic. Chinese investors have been attracted to Kathmandu's lucrative hotel and tourism sector, and have been involved in several construction projects that cast doubt about Beijing's intentions.

"Chinese businessmen have invested in more than 400 hotels and restaurants in tourist hubs including Kathmandu, Lalitpur, Bhaktapur, Kaski, and Chitwan," new report published by Khabar Hub read, according to ANI. 

Chinese conduct business in Nepal 'without paying taxes'

Beijing's investors and traders have spent on more than 50 restaurants and or businesses in Pokhara, as well as many or cities of Nepal."Chinese trend of doing business in Nepal without paying taxes to government and making payments through an online system by booking desired rooms has added to problems of tourism industry," Hotel Association of Nepal (HAN) officials were cited as saying in ir complaint.

China has been rigorously expanding its footprint in country, and Nepal's ruling party has gotten wary of China's ambitious Belt and Road Initiative that has mounted more worries as Sri Lanka's ecomy and financial framework completely collapsed. two countries Nepal and China had earlier signed a Memorandum of Understanding (MoU) on BRI back in May 2017 under n-Prime Minister Pushpa Kamal Dahal.

Hoping that agreement would attract foreign investment in country, Nepal hailed Beijing-Kathmandu framework. Under infrastructure cooperation, a trans-Himalayan railway that ran from Chinese port of entry of Jilong/Keyrung to Kathmandu was constructed. China also established a 400 KV electricity transmission line and set up a technical university in Nepal. Since n it had also rigorously invested in roads, tunnels and hydroelectricity dams and tourism sector. Nepalese government however has had some concerns with China with regards to PRC's financial transparency. country prefers soft loans from China instead of commercial ones in China-led Asian Infrastructure Investment Bank (AIIB) and Silk Road Fund (SRF). recent ecomic crisis in Sri Lanka and failure to repay debt have also made Nepal cautious in its financial dealings with Beijing.