In the last few days, China has tried to assuage India's feelings by asserting that the commercial corridor will not have any impact on its stand that the Kashmir issue should be settled by India and Pakistan through dialogue.
The Gwadar port across the waters from Mumbai's port housing the Indian Navy's western naval command provides a berth for China in the Arabian Sea and to the Indian Ocean.
In his earlier remarks, Pres. Duterte said the meetings with the Chinese leaders are aimed at reviewing the political-security developments, economic, cultural, people to people relations, discuss recent exchanges between the two countries and updates in economic cooperation since his state visit past year. And on any security-related issue between China and India, Nepal's position is neutral.
The foreign ministry announced the decision to skip the summit late this evening, listing a string of regional connectivity projects India is participating in to argue that New Delhi remained committed to infrastructure that facilitated trade and movement.
China has touted what it formally calls the Belt and Road initiative as a new way to boost development since Xi unveiled the plan in 2013, aiming to expand links between Asia, Africa, Europe and beyond underpinned by billions of dollars in infrastructure investment.
"We are of firm belief that connectivity initiatives must be based on universally recognised global norms, good governance, rule of law, openness, transparency and equality", Ministry of External Affairs (MEA) official spokesperson Gopal Baglay said.
There are also many opportunities for businesses from both countries to work together, he said. But it could also serve Beijing's geopolitical ambitions.
China's ambitious initiative has also met with criticism from some analysts, who have cautioned that some countries with struggling economy could be burdened with Chinese loans under the project.
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Two sources with knowledge of the situation said the US embassy in Beijing had submitted a diplomatic note to China´s foreign ministry, saying that inviting North Korea sent the wrong message at a time when the world was trying to pressure Pyongyang over its repeated missile and nuclear tests.
"The Initiative is not going to be China's solo show". The initiative is a key contribution to addressing global problems through worldwide cooperation.
Given President Donald Trump's tough talk on trade and rejection of the Trans-Pacific Partnership, the conventional wisdom was that Trump would continue or even amplify the Obama administration's resistance to playing a role in One Belt, One Road.
Bhutan has no diplomatic relations with China.
The signing will bring bilateral economic and social cooperation, especially in the area of post-earthquake reconstruction in Nepal.
What do you think is the way forward for the two countries now?
The Foreign Ministry statement also says "Expansion and strengthening of connectivity is an integral part of India's economic and diplomatic initiatives". He had warned that New Delhi's absence "will not be constructive" for bilateral ties.
Many of China's neighbours among these countries have sovereignty concerns similar to India's.
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