HomeBilateral Relations
Nepal-China Relations
Political Relations
Nepal-China relations have always remained good and cordial. These relations have been marked by friendliness, mutual support and understanding and appreciation of each other's aspirations and sensitivities. Our two countries are abiding by the ideals of the Five Principles of Peaceful Co-existence. The history of our relations could be traced back to the 5th century when sages and saints engaged themselves in visiting far and wide in the pursuit of knowledge and peace. The marriage of Bhrikuti to the Tibetan King, Song Sang Gampo, in the 7th century and the White Pagoda in Beijing constructed under the guidance of Nepalese architect Araniko have inter alia, provided testimony to the historical relations between Nepal and China. Nepal and the People's Republic of China established diplomatic relations on 1 August 1955.
Nepal and China share a long border, spanning a range of about 1414 Kilometers. The two Governments resolved border issue amicably in 1961, and have been conducting joint inspection of the border at regular intervals. Nepal and China are supporting each other in many regional and international forums, including the United Nations. Nepal has always been upholding 'One China' policy and is committed not to allow Nepalese territory to be used against our friendly neighbor China's core interests. The Government of Nepal, in a press release issued on 16 March 2005, unequivocally supported the Anti-secession Legislation enacted by the National People's Congress on 14 March 2005. At the same time, Nepal has also appreciated 'one country two systems' principle as enunciated by China and applied successfully in Hong Kong and Macao in the form of Special Administrative Regions.
Major Bilateral Visits
Visits to China
Exchange of visits has immensely contributed to further nurturing Nepal-China bilateral relations. In this regard, Right Honorable President Dr. Ram Baran Yadav, paid an official visit to China in October 2010 and also attended the Shanghai Expo. Rt. Hon. Vice-President Mr. Parmanand Jha also paid a visit to China in 2010.
Visits by former Prime Ministers in recent times include late Girija Prasad Koirala (1992 and 1993), late Manmohan Adhikari (1995), Sher Bahadur Deuba (1996), Pushpa Kamal Dahal 'Prachanda' (2008), Madhav Kumar Nepal (2009). Similarly the visits of former Deputy Prime Ministers and Minister for Foreign Affairs include Upendra Yadav (2009), Sujata Koirala (2009 & 2010) Chakra P. Bastola (2000) and Ramesh Nath Pandey (2005).
The visits by former monarchs to China include the state visit of late King Birendra in July 2002 and the visit of former king Gyanendra Saha in April 2005 to attend The Boao Forum for Asia (BFA) annual conference 2005.
Recent Visit of Deputy Prime Minister and Minister for Foreign Affairs 2011
Hon. Deputy Prime Minister and Minister for Foreign Affairs Mr. Narayan Kaji Shrestha 'Prakash' paid an official visit to the People's Republic of China from 22 to 28 November 2011 and held bilateral talks with his Chinese counterpart H.E. Mr. Yang Jiechi in Beijing on 25 November 2011. He also paid a courtesy call with Chinese Premier Mr. Wen Jiabao and met with H.E. Mr. Chen Deming, Minister of Commerce of People's Republic of China. During his week-long trip, Hon. DPM also visited Lhasa, the capital of the Tibet Autonomous Region of China, Shanghai, and Hong Kong Special Administrative Region.
Visits from China
Similarly, the visits to Nepal paid by Chinese President H. E. Mr. Jiang Zemin, in December 1996 and also by Premier H. E. Mr. Zhu Rongji in May 2001 have been significant in enhancing good-neighborly relations between the two countries.
The other official visits by Chinese side include H. E. Mr. Jia Qinglin, Chairman of the Chinese People's Political Consultative Conference (2003), H. E. Mr. Li Zhaoxing, Chinese Foreign Minister (March-April 2005), State Councilor Tang Jiaxuan (2006), Vice-Chairman of the Standing Committee of the NPC of the People's Republic of China Mr. Li Tieying (DPM level) in 2007, and Foreign Minister H.E. Mr. Yang Jiechi (2008).
Similarly, Mr. He Yong, Secretary of the 17th Central Committee of the CPC (2010), Mr. Cai Wu, Culture Minister (2010), Mr. Wan Jifei, Chairman of the China Council for Promotion of International Trade (2010), H.E. Mr. Zhou Yongkang, Standing Committee Member of the CPC Central Committee (Aug 2011), H.E. Mr. Liu Qi, Politbureau Member of CPC and Party Secretary to Beijing Municipality (Nov 2011) and H.E. Mr. Wu Yingjie Vice-Chairman of the Tibet Autonomous Region (Nov 2011) also visited Nepal.
Apart from these visits, there have been a number of exchanges of visits to and from Nepal at various levels, contributing immensely to further promoting the understanding between the two countries.
Development Cooperation
China has been assisting Nepal in its efforts for socio-economic development since mid-50s. The first 'Agreement between China and Nepal on Economic Aid' (20 million Indian Rupees in cash and 40 million rupees for aided projects) was signed in October 1956. Ever since, China has been providing financial and technical assistance to Nepal, which has greatly contributed to Nepal's development endeavors. In the early years, Chinese assistance was pledged in terms of projects and no financial involvement therein was mentioned. From mid-90s, the Chinese Government has been pledging grant assistance to the Government of Nepal under the Economic and Technical Cooperation programme in order to implement mutually agreed development projects. The current volume of Chinese grant under Economic and Technical Assistance to Nepal is 150 million Rembini (RMB), which was announced during the official visit of the then Prime Minister Madhav Kumar Nepal in Dec 2009.
Major Completed Projects in Nepal
A. Road and Transport
| I. | Arniko Highway | (104 Km) |
| II. | Arniko Highway (Rehabilitation) | |
| III. | Kathmandu Bhaktapur Road | (13 Km) |
| IV. | Prithvi Highway and Surface Pitch Paving | (174 Km) |
| V. | Narayanghat-Mugling Road | (36 Km) |
| VI. | Gorkha Narayanghat Road | |
| VII. | Kajhuwa-Gorkha-Road | (24 Km) |
| VIII. | Kathmandu-Bhaktapur Trolly Bus | (14 Km) |
| IX. | Kathmandu Ring Road | (27.2 Km) |
| X. | Pokhara-Baglung Road | (65 Km) |
| XI. | Seti River Bridge at Pokhara |
B. Industries
I. Bansbari Leather and Shoes Factory
II. Hetauda Cotton Textile Mills
III. Harisidhi Brick Factory
IV. Bhaktapur Brick Factory
V. Industrial Gloves and Apron Manufacturing at Bansbari
VI. Bhrikuti Paper Mills
VII. Lumbini Sugar Mills
C. Water Resources
I. Sunkoshi Hydroelectricity Plant
II. Pokhara Water Conservancy and Irrigation Project (Multipurpose)
III. Sunkoshi Vicinity Electricity Transmission Project
IV. Sunkoshi-Kathmandu Electricity Line Transmission Project
D. Health
I. B.P. Koirala Memorial Cancer Hospital, Bharatpur
II. Civil Service Hospital
III. National Ayurvedic Research and Training Institute
E. Sports
I. Sports Complex at Kathmandu and Lalitpur
II. Construction of Sports Facilities for the 8th South Asian Federation Games in 1999
III. Repair of Lighting System in the Sports Complex (April 2005)
F. Other Construction projects
I. National Trading Complex
II. Warehouse at Kathmandu and Birgunj
III. City Hall in Kathmandu
IV. Birendra International Convention Centre
V. Consolidating Seti River Bridge in Pokhara
VI. A three-month arch bridge training course for 15 Nepalese engineers
VII. Pokhara Sedimentation Pond
VIII. Provision for the Television Truck for NTV
IX. Mobile X-Ray Machine for Birgunj Dryport Customs Office
X. Nepal Television Metro Channel Station Expansion and Improvement
XI. Installation of Optical Fibre along the Araniko Highway
XII. Conservation Research Centre for National Trust for Nature Conservation.
IV. Polytechnic Institute in Banepa
Ongoing Projects
a. Syafrubesi-Rasuagadhi Road (16 km)
b. Tatopani Dry Port
c. Improvement of Kathmandu Ring Road
d. Upper Trishuli A Hydro-power project (60 MW)
Economic Relations
Nepal-China Trade
The volume of Nepal-China trade is increasing every year. Nepal's trade with China is largely conducted through Tibet and Hong Kong. The volume of Nepal-China trade for the last few years is given below.
Nepal-China Trade
| Fiscal Year | Exports (Rs in millions) | Imports (Rs in millions) | Imports (Rs in millions) |
| 2007/08 | 944.489 | 24,433.205 | 22,488.716 |
| 2008/09 | 2151.783 | 34,465.791 | 32,314.008 |
| 2009/10 | 1380.274 | 43,445.613 | 42,065.339 |
| 2010/11* | 746.023 | 45,635.962 | 44,889.939 |
Source: Trade and Export Promotion Center, Nepal Foreign Trade Statistics, 2009/10
The following six trading points along the Nepal-China border have been opened for overland trade with the People's Republic of China.
Kodari-Zhangmu
Rasua-Jilong
Yari (Humla)-Pulan
Olangchunggola-Riwu
Kimathanka-Chentang
Nechung (Mustang)-Lizi
10. Tourism
The Government of the People's Republic of China has designated Nepal as one of the tourist destinations for its people. To encourage Chinese tourists, Chinese Yuan has been made convertible for tourists and businessmen. Similarly, the Ministry of Tourism and Civil Aviation and the Government of Tibet Autonomous Region, People's Republic of China have formed a Joint Committee to promote tourism between the two countries.
Nepal and China have also signed Air Services Agreement and a MoU in August 2003. Tourist arrival figure from China was just a meager few hundred a decade ago. More and more Chinese tourists are visiting Nepal these days which is given in table below:
| S.N. | Year | No. of Tourists | Remarks |
| 1 | 2007 | 14,426, | |
| 2 | 2008 | 14,076 | |
| 3 | 2009 | 18,677 | |
| 4 | 2010 | 25,559 | |
| 5 | 2011 | 30,000* |
*First nine months Source: Nepal Tourism Board
Investment
The Chinese investment in Nepal is growing, and has potential to further growth. There are total 401 industries where Chinese companies have invested in Nepal. The areas of investments include: agriculture (17 industries), construction (7 industries), energy based industries (8 industries), manufacturing (126 industries), mineral (29 industries), service (106 industries) and tourism (108 industries) with a total amount of direct foreign investment worth Rs 7036.17 millions and providing employment opportunities for 23325 persons. The Federation of Nepalese Chamber of Commerce and Industry, especially under the framework of Nepal-China Non-Governmental Cooperation Forum, is also working towards attracting Chinese investment in Nepal. Source: Department of Industry
Cultural Cooperation
Nepal and China have concluded a MoU on cultural cooperation in 1999, which replaced the Agreement on Cultural Cooperation signed in October 1964. Various activities have taken place since then. Cultural programmes have been organized in each other's territories; and visits have been exchanged. Recently, Fifth China Festival was held in Kathmandu from 11 to 20 December 2011, which was inaugurated by Rt. Hon. Dr. Baburam Bhattarai, Prime Minister of Nepal. A new draft Agreement on Nepal-China Cultural Cooperation is under consideration.
Scholarships
Government of Nepal appreciates the Chinese assistance in the field of education. China has been providing different scholarships (not exceeding 100 students at a time) to Nepalese students to study in China. It has helped to meet the ever-increasing demand for technical human resources in the country along with the better understanding and appreciation to each other's culture and tradition.
Bilateral Consultation Mechanisms
1. Inter-Governmental Economic and Trade Committee (IGETC)
Nepal and China have established IGETC in October 1982. The IGETC meetings have become the main forum for discussions on Nepal-China bilateral economic and technical cooperation. The IGETC meetings focus on economic and technical assistance, bilateral trade and tourism. The Committee is headed by the Finance Ministry of Nepal and Commerce Ministry of China.
2. Nepal-China Consultation Mechanism
This Mechanism has been established in April 1966 which is headed by the Foreign Secretary of Nepal and vice Minister of the Ministry of Foreign Affairs of the People's Republic of China. It overviews the overall bilateral relations between Nepal and China.
3. Nepal-China Non-Governmental Cooperation Forum
This Forum was establised in 1996 during the official visit of the then Prime Minister Mr. Sher Bahadur Deuba to China. This is the Forum to be headed by the apex bodies of the private sectors of both the countries to encourage private sector collaboration between the two countries.
4. Joint Border Inspection
The Third Joint Inspection of Nepal China Border
As per the Border Agreement between Government of Nepal and the Government of the People's Republic of China, the border between the two countries is jointly inspected in every ten years. Accordingly, the first and the second inspections had taken place in 1979 and 1988 respectively. In 2003, the Governments of Nepal and China decided to establish a Joint Border Inspection Mechanism to undertake the third joint inspection of their border. The process for the Third Joint Inspection has been ongoing.
Back to Bilateral Relations
Hon. Deputy Prime Minister and Minister for Foreign Affairs
Narayan Kaji Shrestha 'Prakash'
Foreign Secretary
Durga Prasad Bhattarai
Office of the Deputy Prime Minister and Minister for Foreign Affairs Diplomatic Code of Conduct 2011
Kutnitik Aachaar Sanhita, 2068 Diplomatic List 2011