China is not competing with India for influence in Nepal, but hopes its neighbouring countries, including Nepal, will benefit from Chinese development. Beijing also hopes that Kathmandu can be a bridge between China and India and to promote the China-Nepal-India Economic Corridor, which will bring development and prosperity for all three economies. However, the Indian strategic circle is still holding a mindset of geopolitical competition and zero-sum game, rather than treating the cooperation between China and South Asia from the perspective of geo-economy and win-win collaboration. This is the dilemma of Nepal’s foreign policy.