China has said Chinese investors are facing problems in Nepal following frequent policy changes.

Addressing a virtual press meet on Thursday, Chinese ambassador to Nepal Hou Yanqi said that policies change in Nepal with the change in governments creating problems for investors and entrepreneurs.

“Government changes are natural in democratic countries and it is their internal matter. However, a change in policies with the change in the government is a cause of concern,” said Hou. “This affects the investors mainly in the large projects. Construction of hydropower projects or other industries take time where the investors make long-term planning and investment. However, a frequent change in policies affects them.”

Though she didn’t name, her discontentment appeared to be over the incumbent government’s decision to revoke the erstwhile KP Sharma Oli administration’s decision to award the construction contract of Budhigandaki Hydropower Project to China Gezhouba Group Corporation. The Sher Bahadur Deuba Cabinet on April 7 scrapped the decision of the Oli government made in September, 2018.

The Chinese envoy to Nepal also pointed out problems in land acquisition and felling trees and plants for the project development. “We expect the Nepal government to address these problems,” she said.

Hou also expressed concerns over talks in Nepal about a “soft blockade” by China.

She said it was wrong to call it a blockade when there are some difficulties in movements of cargo trucks because of the pandemic.

That the China-Nepal trade jumped by 63 percent last year proves that the “soft blockade” claim is baseless, she said.