China this year overtook India as Nepal’s biggest foreign investor, funding power plants, noodle factories and meat-processing units in one of the world’s poorest countries. Trade is also booming: Nepal’s commerce with China has outpaced that with India by 17 times since 2006, eroding the influence of New Delhi’s leaders. Signs of China’s growing presence are visible throughout Kathmandu, including the flags that wave about the construction site, Mandarin announcements at the international airport and a Chinese-language book shop that popped up in the capital last month. Local markets are flooded with China-made goods such as Hindu idols once sourced from India. “China looks to Nepal as a gateway to South Asia,” Akshay Mathur, head of research at Mumbai-based Gateway House, said by phone. “It’s part of a broader strategy to extend its sphere of influence.”
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