“Nepal has a huge market to explore and it has even got the zero tariff facility for more than 4 thousand items. And to use that there should be industrial production which is only possible after development of hydro electricity,” Yang Houlan, Chinese ambassador to Nepal said on Sunday.[break]
Addressing the 12th annual general meeting of Nepal-China Chamber of Commerce and Industry (NCCCI) in Kathmandu, he further added, “I have heard some rumors about the Chinese investment in Nepal, but I am hopeful that people will support development endeavors.”
Meanwhile, Finance Minister Barsha Man Pun said concerns of people, media and civil society should be taken positively. “It doesn´t mean that we will stop development work ” Pun said in reference to public demands over West Seti and international regional airport in Pokhara.
“Development of West Seti hydroelectric project is an important step for the country´s betterment and we should not be too obsessed with who is building it, rather we have to focus on national interest.”
Elaborating the opportunities that Nepal has in Chinese market, ambassador Houlan urged Nepali businessmen to maximize their export to China. “Market potential in China can´t be ignored,” he said, “Government of China has given Nepal the duty free treatment for 4810 items.”
However, Nepali businessmen, appreciating the duty-free treatment provided from China, claimed that the main hassles for export are non-tariff barriers. “We have problems in ports and quarantine related issues which disrupt our export to China,” Dr Rajesh Kaji Shrestha, president of NCCCI said.
Despite the zero tariff treatment to Nepali products, Nepal has huge trade deficit with China. According to recent statistics from NCCCI, Nepal had more than Rs 62 billion trade deficits with China in 2010/11.
Moreover, Chinese envoy Houlan said China always supported Nepali businessmen and was helping to build dry port in Tatopani to address the traffic congestion problem. “We are working on Kilong port and hope the second trade route through Kilong port will be put into use soon,” Houlan said.
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