China has reacted to a recent remark by Washington’s ambassador nominee for Nepal that the Millennium Challenge Corporation compact was ratified despite a “disinformation campaign” by China.

Issuing a statement on Friday, the Chinese embassy in Kathmandu said that the US remarks were totally baseless.

“They have not only slandered China, but also offended Nepal and its people. It is a true ‘disinformation.’ China firmly rejects it,” reads the statement.

In his opening statement before the Foreign Relations Committee of the US Senate on Wednesday, Dean R Thompson had said: “In February, Nepal’s parliament ratified the $500 million Millennium Challenge Corporation compact in the face of a torrid PRC [People’s Republic of China] disinformation campaign.”

Wang Xiaolong, spokesperson for the Embassy of China in Kathmandu, said in the statement that the MCC compact was endorsed along with an interpretative declaration to ensure that the Constitution of Nepal shall prevail over the compact and other associated agreements and that Nepal shall not be part of any United States’ strategy, military or security alliance including the Indo-Pacific Strategy.

“These are legitimate actions of the Nepali government and people to defend their sovereignty and independence and safeguard national interests,” Wang said. “It is China’s consistent belief that in pursuing international development cooperation, the principle of mutual respect and equality should be upheld, the sovereignty of the country concerned and the will of its people should be fully respected.”

The embassy added that there should be no interference in any country’s domestic affairs, no political strings attached, no coercive diplomacy, and certainly no infringement on other countries’ sovereignty and interests for selfish gains.

When debates were raging in Nepal over the MCC compact, China had warned Washington against “coercive diplomacy” in Nepal. Beijing’s strong position had become even more apparent after it said if the MCC compact was a gift why there was a deadline.

“As Nepal’s friendly close neighbour and development partner, China will continue to support Nepal in safeguarding its sovereignty, independence and national interests,” the embassy said, “and support the Nepali people in choosing independently their own development path and offer support and assistance to Nepal’s socioeconomic development to the best of its capability,”

The MCC Compact was ratified by the House of Representatives on February 27 along with the interpretative declaration.