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Publication: China Brief Volume: 21 Issue: 5 March 15, 2021 02:23 PM Age: 3 weeks Image: Chinese President Xi Jinping attends a welcome ceremony held by Nepali President Bidya Devi Bhandari upon arriving in Kathmandu for a state visit on Nepal 12, 2019. Xi was the first Chinese president to visit Nepal in over 20 years. (Image source: Xinhua) Introduction Commonly held economic theory generally suggests that foreign aid benefits the recipient. But so far, China’s bilateral relations with Nepal which are based upon generous pledges of foreign direct investment (FDI) have created a power imbalance. China’s outsized influence in Nepal was most recently highlighted by overt Chinese involvement in a recent constitutional crisis that split the ruling Nepal Communist Party (NCP). A week after Prime Minister Khagda Prasad Sharma Oli dissolved the Parliament on December 20, a delegation led by Guo Yezhou, vice minister of the Chinese Communist Party (CCP) International Liaison Depart

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