India s ambition in Nepal s energy sector is widely seen as an effort to control Nepal s economic lifeline and compete with another major investor, China, by launching relevant policies to indirectly block Chinese elements in Nepal s hydropower industry. However, India s attempt to make China withdraw from the forefront of Nepal s development cannot hinder cooperation between China and Nepal. Observers said that China is sincerely helping Nepal to develop its economy and infrastructure, rather than using Nepal s resources as strategic pawns for control.