Nepal-China Relations

Nepal-China Relations

Political

The age-old and deep-rooted relations between Nepal and the People’s Republic of China have always remained friendly and cordial. The historic and multi-faceted relations between the two countries have evolved since the days of Nepali monk and scholar Buddhabhadra (early 5^th Century), Princess Bhrikuti (first half of the 7^th Century) and Araniko (Anige, Second half of the 13^th Century), and early visits of Chinese monks and scholars like Monk Fa Xian (Jin Dynasty), Monk Xuan Zang (Tang Dynasty) among others.

Nepal and China formalized their relations on 1 August 1955 by establishing diplomatic relations. The two countries celebrated the 70^th anniversary of diplomatic relations in 2025 by organizing various commemorative events. The relations between the two countries have been marked by friendliness, understanding, mutual support, cooperation and respect for each other’s aspirations and sensitivities. Both countries have relentless faith on the ideals of the Five Principles of Peaceful Co-existence.

Nepal is firmly committed to One China Principle and is also committed not to allow its soil to be used for any inimical activities against China.

The two countries share a range of 1,414 kilometers border in the Himalayan range of the northern side of Nepal.

Nepal has its Embassy in Beijing, Consulates General in Lhasa, Hong Kong, Guangzhou, Chengdu and an Honorary Consul in Shanghai.

Exchange of visits

Nepal and China have a long tradition of exchanging high-level visits on a regular basis which have been contributing to enhancing and consolidating bilateral ties. Both countries have also been utilizing the bilateral, regional and multilateral forums to hold meetings between the leaders to maintain regular contacts and share views on issues of mutual interests.

From the Nepali side

The then Prime Minister Mr. K P Sharma Oli visited China from 30 August to 3 September 2025 to participate in the Shanghai Cooperation Organization (SCO) Summit 2025 and the Commemoration of the 80^th Anniversary of the Victory of the Chinese People’s War of Resistance at the cordial invitation of H. E. Mr. Xi Jinping, President of the People’s Republic of China. The Nepali Prime Minister held bilateral meetings with H.E. Mr. Xi Jinping on 30 August and H.E. Mr. Han Zheng, Vice President of China, on 2 September 2025, respectively. The two sides, while cherishing the 70 years of diplomatic relations between Nepal and China, reviewed bilateral ties. On 3 September 2025, Mr. K.P. Sharma Oli attended the 80^th Anniversary Commemoration of the Victory of the Chinese People’s War of Resistance held in Beijing.

The then Foreign Minister Dr. Arzu Rana Deuba participated in the signing ceremony of the Convention on the Establishment of International Organization for Mediation as an observer representing the Government of Nepal. The ceremony was organized by the Government of China in Hong Kong on 30 May 2025. On the sidelines of the ceremony, she held a bilateral meeting with Minister of Foreign Affairs of China Mr. Wang Yi on 30 May. Matters relating to Nepal-China relations and cooperation in various fields were discussed during the meeting.

Then Prime Minister Mr. K P Sharma Oli paid a State Visit to China from 2 to 5 December 2024 at the invitation of H.E. Mr. Li Qiang, Premier of the State Council of the People’s Republic of China. During the visit, he had a meeting with H. E. Mr. Xi Jinping, President of the People’s Republic of China and held bilateral talks with H.E. Mr. Li Qiang, Premier of the State Council of the People’s Republic of China. The Nepali Prime Minister also held a meeting with H.E. Mr. Zhao Leji, Chairman of the Standing Committee of the National People’s Congress of China. During these bilateral meetings extensive discussions were held on the issues of mutual interest. A total of ten MoUs including the Framework for Belt and Road Cooperation were signed.

Then Minister for Foreign Affairs Dr. Arzu Rana Deuba paid an official visit to China from 28 to 30 November 2024 at the invitation of H.E. Mr. Wang Yi, Minister for Foreign Affairs of the People’s Republic of China.

The then Prime Minster Hon’ble Mr. Pushpa Kamal Dahal ‘Prachanda’ paid a State Visit to China in September 2023.

The then President Mrs. Bidya Devi Bhandari paid a State Visit to China in April 2019 and attended the Second Belt and Road Forum. A total of seven bilateral agreements were signed during the visit.

Mr. K P Sharma Oli, then Prime Minister of Nepal, paid an official visit to China from 19 to 24 June 2018 at the invitation of H. E. Li Keqiang, Premier of the State Council of the PRC. The Prime Minister had separate delegation level talks with the President of China H. E. Mr. Xi Jinping and Premier H. E. Mr. Li Keqiang at the Great Hall of the People on 20 and 21 June 2018 respectively.

Earlier in March 2016 also, Mr. K P Sharma Oli, then Prime Minister of Nepal, paid an official visit to China at the invitation of H. E. Li Keqiang, Premier of the State Council of the PRC. Both sides signed various agreements and MoUs including the Agreement on Transit Transport.

The then Prime Minister Mr. Pushpa Kamal Dahal ‘Prachanda’ visited China on 23-29 March 2017 to attend the Annual Session of the Boao Forum for Asia (BFA) 2017 and held meetings with Chinese President H.E. Mr. Xi Jinping and other leaders of China in Beijing. He also addressed to the BFA’s Opening Session on 25 March 2017 on the theme “Globalization and Free Trade: The Asian Perspectives”. Earlier in October 2016, he had a meeting with the Chinese President on the sideline of the BRICS-BIMESTEC Outreach Summit in Goa, India.

From the Chinese side

H.E. Mr. Chen Xiaodong, Chairman of China International Development Cooperation Agency, visited Nepal from 20 to 22 July 2025. During his visit he paid a courtesy call on the then Prime Minister Mr. K P Sharma Oli and held meeting with then Deputy Prime Minister and Finance Minister Mr. Bishnu Prasad Paudel. During his visit, four MoUs - two related to health sector (Bone Marrow Transplantation at B.P. Koirala Memorial Cancer Hospital, and Expansion of Civil Service Hospital), one related to Human Resource Development and one related to cross border transmission line (Rasuwagadi-Keyrung) were signed.

Leading a deletion, H.E. Mr. Xiao Jie, Vice Chairman of the Standing Committee of the National People’s Congress of the People’s Republic of China, visited Nepal from 14 to 17 May 2025. He participated in the opening ceremony of the Sagarmatha Sambaad, paid courtesy call on then Prime Minister Mr. K P Sharma Oli, and held meetings with the then Speaker and Deputy Speaker of the House of Representatives, and the Chairman of the National Assembly.

H.E. Mr. Xi Jinping, President of the People’s Republic of China paid a historic visit to Nepal in October 2019 at the invitation of Mrs. Bidya Devi Bhandari, the then President of Nepal. During the visit, President Xi met with President Bhandari and held talks with the then Prime Minister Mr. K P Sharma Oli. Leaders of the two countries reached broad understanding through in-depth exchange of views on bilateral relationship and regional and international issues of common concern.

H.E. Mr. Wang Yi, State Councilor and Minister of Foreign Affairs of the People’s Republic of China paid visits to Nepal in September 2019 and March 2022. He also visited Nepal in June 2015 to attend the ‘International Conference on Nepal’s Reconstruction.’

The Premier of China H.E. Mr. Wen Jiabao visited Nepal on 14 January 2012.

Bilateral Mechanisms

There are several bilateral mechanisms between Nepal and China. Nepal-China Joint Consultation Mechanism is one of them, which is led by the Foreign Secretary of Nepal and the Vice Minister of the Foreign Ministry of China. This forum is instrumental in discussing entire realm of bilateral relations. The 16^th Meeting of Nepal-China Joint Consultation Mechanism was held in Kathmandu on 25 June 2024. During the meeting, there was comprehensive discussion on all important matters of bilateral relations and both sides reviewed the progress made in relation to previous agreements, understandings and commitments.

Another such mechanism is Mechanism for Facilitation on the Implementation of China-Nepal Cooperation Programmes and Projects in Nepal. The Mechanism is co-chaired by Foreign Secretary of Nepal and Ambassador of China to Nepal, and its first meeting was held in Kathmandu on 3 December 2018. The second meeting of this facilitation mechanism was held on 23 May 2025 in Kathmandu.

Similarly, the meetings of Nepal-China’s Xizang Economic and Trade Facilitation Committee (NXTFC) (established under MoU signed on 2 September 2009) are regularly held. The 13^th meeting of NXTFC was held on 17-18 June 2025 in Lhasa.

The first meeting for Energy Cooperation Mechanism was held in Kathmandu on 28 September 2018. Other bilateral mechanisms include Nepal-China Inter-Governmental Economic and Trade Committee, Nepal-China Joint Committee on Agriculture Cooperation, Border Law Enforcement Cooperation, Border Customs Meeting, Joint Tourism Co-ordination Committee, Nepal-China Coordination Mechanism on Border Trade and Cooperation among others.

Economic/Development Cooperation

Nepal-China economic cooperation dates to the formalization of bilateral relations in 1950’s. The first “Agreement between China and Nepal on Economic Aid” was signed in October 1956. From the mid-80s, the Chinese Government has been pledging grant assistance to the Government of Nepal under the Economic and Technical Cooperation Program to implement mutually acceptable development projects.

Chinese assistance to Nepal falls into three categories: Grants (aid gratis), interest free loans and concessional loans. The Chinese financial and technical assistance to Nepal has greatly contributed to Nepal’s development efforts in the areas of infrastructure building, industrialization process, human resources development, health, education, water resources, sports and the like.

Some of the major projects under Chinese assistance include:

• Syaphrubesi-Rasuwagadi Highway Repair and Improvement Project
• Kathmandu Ring Road Improvement Project (Phase II)
• Bir Hospital Extension Project
• Xiarwa River (Hilsa Bridge)
• China Nepal Cross border Railway Project

With the signing of the Memorandum of Understanding on Cooperation under the Belt and Road Initiative on 12 May 2017 in Kathmandu, and the signing of the Framework for Belt and Road Cooperation on 4 December 2024 in Beijing, between Nepal and China, new avenues of bilateral cooperation in the mutually agreed areas are expected to open. The major thrust of the cooperation under the BRI is to promote mutually beneficial cooperation between Nepal and China in various fields such as connectivity, economy, environment, technology and culture.

Under the Framework for Belt and Road Cooperation, the following projects have been preliminarily identified as potential projects for joint implementation between the two sides:

1. Tokha-Chhahare Tunnel

2. Hilsa-Simikot Road Project

3. Kimathanka-Khandbari Road and Kimathanka Bridge and Integrated Check Post Project

4. Nepali section of the China-Nepal Cross-Border Railway Project

5. Amargadhi City Hall Project

6. Jilong-Rasuwagadhi-Chilime 220 KV Cross Border Power Transmission Line

7. Madan Bhandari University of Science and Technology

8. Kathmandu Scientific Center and Science Museum

9. China-Nepal Friendship Industrial Park

10. Jhapa Sports and Athletics Complex

The Government of the People’s Republic of China provided substantial and spontaneous support in search, relief and rescue efforts of Nepal following the devastating earthquakes of 2015. China provided 3 billion Yuan for Nepal’s reconstruction to be used in the mutually selected 25 major projects for the period of 2016-2018. The two countries signed three separate bilateral agreements on Economic and Technical Cooperation on 23 December 2016, 15 August 2017 and 21 June 2018 for providing Chinese grant of one billion Yuan each to Nepal for implementing post-disaster reconstruction projects, livelihood projects and other mutually agreed projects.

The China International Development Cooperation Agency (CIDCA) is the foreign aid and international development agency of China established in April 2018. Most of the Chinese aids and grants are disbursed through CIDCA. At present CIDCA is working on total 19 projects in Nepal (ongoing as well as completed), with total commitment of 1.3 billion USD and disbursements of 547.1 million USD (Source: Ministry of Finance).

Similarly, China’s Export-Import (EXIM) bank finances large infrastructure projects in Nepal. The Pokhara Regional International Airport (PRIA) was built under mixed loans (interest-free and concessional) from EXIM bank. The airport has been operationalized since 1 January 2023.

Trade and Investment

Source: Department of Customs, Annual Reports

China is the second largest trading partner of Nepal. Major exports from Nepal include agricultural products, tea, coffee, Yarchhagumba, Rudrakshya seeds etc. Similarly, Nepal imports machinery, electronics, construction materials, clothing/textiles, footwear, fertilizers, and pharmaceuticals. Trade deficit of Nepal with China has been in an increasing trend. China has given zero tariff entry facility to over 8,000 Nepali products since 2009. Nepal regularly participates in various trade fairs and exhibitions organized in China. Nepal-China’s Tibet Economic and Trade Fair is the regular biannual event hosted by either side alternatively to enhance business interaction and promote economic cooperation between Nepal and TAR, China. Nepal has been participating regularly in the China International Import Expo held in Shanghai every year.

Nepal-China Non-Governmental Cooperation Forum was established in 1996, which is led by the President of the Federation of Nepali Chambers of Commerce and Industry (FNCCI) from the Nepali side and the Vice Head of the All-China Federation of Industry and Commerce (ACFIC) from the Chinese side. It is an initiative to mobilize the apex business organizations of both sides to enhance cooperation between the private sectors of two sides. The meeting of the forum is usually held every year alternatively in Nepal and China.

China is the largest sources of Foreign Direct Investment in Nepal particularly in hydropower, tourism, and manufacturing. Total Foreign Direct Investment Nepal received from mainland China stands around Rs. 224 billion by FY 2080/81 comprising of 45.34 % of total FDI share (Department of Industry).

Tourism

Source: Ministry of Culture, Tourism and Civil Aviation/ Nepal Tourism Board

China is one of the largest sources of foreign tourists to Nepal. A total of 95,480 Chinese tourists visited Nepal in 2025. The number of Chinese tourists visiting Nepal reached highest- 169,543 in 2019 before covid-19 pandemic. The Government of Nepal has waived visa fees for the Chinese tourists effective from 1 January 2016. The Chinese Government announced the year 2025 as Nepal Visit Year in China. Nepal has road connectivity with China via Rasuwagadhi and Tatopani border points for trade and international travelers. There are four other border points designated for bilateral trade. Nepal has direct air links with Lhasa, Chengdu, Kunming, Guangzhou and Hong Kong SAR of China.

Education and Cultural Cooperation

China provides scholarships every year not exceeding a total of 100 Nepalese students studying in China. Both sides have been carrying out activities in culture and youth sectors as per the provisions of the MoU on Cultural Cooperation-1999 and MoU on Youth Exchange-2009. Both sides have been promoting people-to-people relations through regular hosting of cultural festivals, friendly visits of the peoples of different walks of public life, exhibitions, cultural and film shows, food festivals, among other things. Sister city relations between the cities of two countries are growing. These relations are basically meant for carrying out exchanges and cooperation in the fields of economy, trade, transportation, science and technology, culture, tourism, education, sports and health, among others.

Institute of Foreign Affairs of Nepal (IFA) and China Foreign Affairs University (CFAU) signed a Memorandum of Understanding in 2015 marking the 60^th anniversary of establishment of diplomatic relations.

The Government of China has established Confucius institute for collaboration between Nepal and China through language, education, and culture. The Confucius Institute at Kathmandu University (established in 2007), and Tribhuvan University (established in 2022) offer Chinese language courses.

Lumbini Buddhist University and Beijing Language and Culture University signed an agreement on December 2024 to facilitate collaboration on cultural exchange, language education, and research.

Similarly, the MoU on Volunteer Chinese Language Teachers in Nepal was signed on 3 December 2024 for the purpose of increasing mutual understanding and enhancing educational and cultural cooperation between Nepal and China.

Regional and International Affairs

Nepal is the founding member of the Asian Infrastructure Investment Bank (AIIB) and holds the status of a Dialogue Partner in the Shanghai Cooperation Organization (SCO). On 1 September 2025, the Prime Minister of Nepal participated in the Shanghai Cooperation Organization (SCO) Plus Summit in Tianjin, China. Nepal has requested for the elevation from status of the dialogue partner to an observer state.

Both countries are also the members of the Asia Cooperation Dialogue (ACD). China is the observer of the SAARC. Both countries have been cooperating with each other in various UN forums on matters of common interests. Nepal has joined the Group of Friends of Global Development Initiative (GDI).

North East Asia Division
Ministry of Foreign Affairs

Singha Durbar, Kathmandu
March 2026