China proposes to set up trade hub worth USD 450 mn in Nepal

China has proposed to set up a major trade centre worth around USD 450 million here for exporting Chinese goods to the South Asian markets including India besides converting the Nepalese capital into an international business hub, according to a media report today.
The proposed town, spreading over 100 hectares of land, will house hotels, restaurants, a hospital, an orphanage, a swimming pool and factories as well as residential complex.
Under the proposal submitted by Shenzhen's Association for Regional Economic Cooperation, a China town will be established here within two years from where Chinese goods can be exported to markets of South Asian countries including Nepal and India, Nepal's Nagarik News, a national daily, reported today.

The cost of the project is estimated to be around three billion Yuan (USD 450 million), or 50 billion Nepalese Rupees.
The proposal was forwarded by Shenzhen province of China last week to Kathmandu Metropolitan Corporation for approval.
"China's Shenzhen province has sister-city relationship with Kathmandu Metropolitan Corporation. With the establishment of the China town, India's vast market will be open for Chinese goods via Nepal. This will also help promote trade and business for Nepal," Administrative Chief of Kathmandu Metropolitan Corporation Rudra Singh Tamang said.

As per the plan, goods aimed for home use as well as industrial purposes will be manufactured in the industrial town. The complex is designed mainly to have easy access of India's huge market for Chinese goods. China's export quality goods will also be available in the town, the report said.

"We are studying the proposal and the matter will be decided after consulting with the concerned government body," Tamang said.
Both Nepal and China will have to enter into an official cooperation agreement before starting the project. As per the plan, the business-cum-industrial complex will be established within 15 km distance from the centre of Kathmandu.
Currently, daily 1,500 to 2,000 Nepalese youths leave the country in search of foreign jobs. The construction of the project also aims to arrest the trend of Nepalese youths going abroad in search of lucrative jobs, the report said.