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Why are Chinese and American activities escalating in Nepal? This research question frames the objective of this study. To opt for an answer, the paper delves into two distinct areas: the rise of Nepal’s communist forces and the corresponding influence of the Chinese Communist Party (CCP), and the historic role of America in curbing communism inside Nepal. It argues, the visible Chinese intent of forming a favorable communist power in Nepal, especially during and after the general elections of 2017, is a fallacy as it undermines American presence to limit the communist influence. Conceptually, the paper claims that the recent regular debates about Millennium Challenge Corporation (MCC) and State Partnership Program (SPP) fail to elucidate the historic role of the United States' ideological hawkish foreign policy in curbing communism in Nepal. To do so, this paper analyzes events inside Nepal in a sequential manner to comprehend the Chinese influence and American retort. To elaborate on Chinese influence, it covers the period of post-2017 elections whereas it traverses back to the 1951 Point Four Program between America and Nepal to explain the American influence inside Nepal. Methodologically, it follows a qualitative method and sources data from newspaper articles, policy documents, official government press releases, and verifiable existing literature.