Prime Minister KP Sharma Oli returned from Beijing on Wednesday following his four-day visit to China, where he attended the 25th Summit of the Shanghai Cooperation Organisation (SCO) and SCO Plus meeting. On the last leg of his visit, the prime minister attended a victory parade commemorating the 80th anniversary of the end of World War II.

But the prime minister’s China visit was not free from controversy. Ruling and opposition parties on Wednesday demanded answers from the prime minister over Lipulekh and China’s claim that Nepal supported the Global Security Initiative (GSI).

After the meeting between Oli and Xi, a statement issued by China's foreign ministry created confusion inside Nepal as it stated that Nepal supported the Global Security Initiative, Global Civilization Initiative and Global Development Initiative. Though the ministers, aides and officials have already refused that besides GDI, Nepal has not supported and entered into any agreement with China on GSI and GCI, during the meeting no such discussion had taken place too.

Upon returning from China, foreign secretary Amrit Bahadur Rai told media at Tribhuvan International Airport on Wednesday night that Nepal has joined only the Global Development Initiative of China and its friendship group.

Asked if Nepal would lodge a protest with China after it published the information that was not discussed, Rai said that it was not necessary. “We are committed to our stated policy, so there is no need to lodge a protest. What matters is what we say,” he added.

Rai said that they will prepare for the prime minister’s visit to India. “We are always ready,” he said, adding, “We will make our position clear in India, just like we did in China.”

During the 24th round of the India-China Special Representatives’ Dialogue on the boundary in New Delhi on August 20, India’s National Security Adviser Ajit Doval and Chinese Foreign Minister Wang Yi agreed to reopen three traditional border trading routes, including the one that runs via the Lipulekh pass, which historically belongs to Nepal.

During a meeting with Chinese President Xi Jinping on Saturday, Prime Minister Oli objected to the Indo-Chinese agreement to use the Nepali territory of Lipulekh as a trade route.

Prime Minister Oli clearly expressed his objection to President Xi, Foreign Secretary Amrit Bahadur Rai said. According to the Sugauli Treaty of 1816, all territories to the east of the Mahakali River belong to Nepal. The dispute over Lipulekh stems from disagreement over the origin of the Mahakali River. Historical maps show Limpiyadhura as the river’s source, while India claims a smaller stream at Kalapani, further downstream, as the origin.

“We have serious reservations over the August 20 Indo-Chinese agreement, and the prime minister put forth our position in a clear way,” Rai had earlier said. In response Chinese President Xi told Oli that China has no objection to Nepal’s claim over Lipulekh and urged Nepal to resolve the issue bilaterally with India.

“That point [Lipulekh] has traditionally been used as a border point, but we don’t want to be a party to this dispute,” Xi told Oli. “We don’t object to Nepal’s claim… but the issue should be resolved bilaterally.”

The ruling Nepali Congress on Wednesday objected to the discussion between Oli and Xi.

Speaking in Parliament earlier on Wednesday, Nepali Congress lawmaker Dilendra Prasad Badu stated that the response from Chinese President Xi on the ongoing border dispute Limpiyadhura, Lipulekh, and Kalapani is not satisfactory for Nepal. Badu represents the farwestern Darchula district, under which the disputed territories fall.

Badu said the Chinese President tried to sidestep the issue by saying the border dispute is a bilateral matter between Nepal and India. “This is an issue that requires resolution… a response that China will not take sides cannot be considered positive. It fails to show respect for our sovereignty,” he stated.

Referring to Nepal’s past diplomatic efforts and protest notes on such sensitive issues as territory and sovereignty, Badu said that Prime Minister Oli raised the matter seriously during his official meeting with President Xi, but the Chinese side avoided engagement.

“When Nepal has consistently respected the one-China policy, it is only natural for us to expect the same level of respect from our friendly neighbour regarding our borders, territorial integrity, and sovereignty. Have we failed to convey this, or is it that China itself refuses to understand?” Badu asked.

Badu also stated that while China had previously agreed to conduct trade with India via Lipulekh, it is now trying to hedge its involvement. He referred to the agreements made between China and India in 2015 and last month to use the Lipulekh Pass as a trade route. As Limpiyadhura, in Nepal’s northwestern Darchula district, is a tri-junction point, China is also directly involved, Badu said. Because of this tri-junction, Badu argued that all three countries—Nepal, India, and China—need to work together to resolve the dispute.

Additionally, Badu raised concerns that the press note issued by China’s Foreign Ministry after PM Oli’s meeting did not mention Lipulekh. Instead, it claimed that Nepal had given its nod to the Global Security Initiative (GSI).

“How did the GSI appear in the press release—an issue which was not even on the discussion agenda?” Badu asked. “Regarding the objection raised by the prime minister about Lipulekh, China’s Foreign Ministry’s press note made no mention of it. Rather, it claimed that the topic did not come up in the discussion, while also stating that Nepal had agreed to the GSI proposal. The Prime Minister’s Secretariat and the Ministry of Foreign Affairs must clarify,” Badu said while speaking in the House of Representatives on behalf of the Nepali Congress.

Speaking in the House, CPN (Maoist Centre) lawmaker Lekhnath Dahal suggested that there may have been some diplomatic immaturity. Dahal said the Nepal government must clarify the matter concerning the Indo-Chinese agreement to trade via the Nepali territory of Lipulekh. He emphasised that Parliament must take a decision on this matter. He added that the entire Parliament and nation must stand united on foreign affairs. Dahal said his party believes the prime minister will make mature decisions on foreign policy matters.

Prakash Jwala of the CPN (Unified Socialist) stated that Nepal is not involved in the military strategies of any global power and should remain so in the future. He questioned the government on the GSI. “What is the reality behind this?” he asked.

The government of Nepal is yet to make an official statement on the matter, said Jwala, adding that Nepal had so far stayed away from the US Indo-Pacific Strategy (IPS), the US State Partnership Program (SPP), and China’s GSI.

Referring to Nepal's Constitution, he emphasized that Nepal is committed to a non-aligned foreign policy and said, “Nepal cannot side with any military strategy.”

“If the prime minister has indeed supported the GSI, then Nepal risks falling into the security traps of powerful nations,” he said. “The government should immediately make an official statement, and I make a special request that the prime minister respond to Parliament.”

Jwala also requested information on whether there had been any discussions between Prime Minister Oli and Russian President Vladimir Putin in China regarding the Nepalis illegally recruited into the Russian military.

CPN-UML lawmaker Julikumari Mahato (Mahaseth) stated that Nepal has expressed its objection to the India-China agreement to trade through Lipulekh. She added that the issue was raised clearly during Prime Minister Oli’s visit to China. According to her, Oli’s visit was not only politically significant but also a diplomatic success.