Historical Relations:

Nepal and China cherish a long history of friendly, cordial and cooperative relations since time immemorial. We have a recorded history of exchanges of visits more particularly by saints and Buddhist scholars since the 4th century. Nepali monk and scholar Buddhabhadra visited China in the early 5th Century. Chinese monks and scholars like Monk Fa Xian (337-422 CE) and Monk Xuan Zang (602 -664 CE) visited Nepal. Nepali princess Bhrikuti was given in marriage to Tibetan Prince Shrong Chong Gampo in the 7^th century. A Nepali architect, Araniko (also known for building the White Stupa at the Miaoying Temple in Beijing) was sent on a project to build a golden stupa in Tibet in the 13^th century where he led a team of 80 artists to China and Tibet to make a number of pagoda style buildings.

Nepal and China established diplomatic relations on August 1, 1955. Ever since, bilateral relations between the two countries have remained friendly and cordial. Relations between Nepal and China are founded solidly on the bedrock of five principles of Panchasheela. Both countries have deeply committed to those principles in maintaining and strengthening bilateral relations and cooperation. China is quite large in terms of geographical size, population, economy, military and others. It has made big strides in its economic development over the last five decades. So has been its international clout. Notwithstanding these achievements made by China over the years, the Nepal-China relationship has remained a model of relations. It exemplifies how two asymmetric powers can continue to maintain good neighborly relations in their mutual interests.

Nepal continues to uphold the One China policy and is committed not to allow any activity that may be inimical to Chinese interests on its soil. In a similar vein, China has an abiding respect for the sovereignty, territorial integrity, stability and national independence of Nepal. The two countries appreciate each other"s interests, concerns and sensitivities.

The two countries share a range of 1,414 kilometers border in the Himalayan range of the northern side of Nepal. Nepal and China remain good neighbours featuring the long-standing trust, age-old friendly and cordial relations as close and immediate neighbours.

Nepal-China relations have been on an upward trajectory from “Good-neighbourly Partnership” in 1996 to “Comprehensive Partnership” in 2009 to “Strategic Partnership of Cooperation Featuring Ever-lasting Friendship for Development and Prosperity”, which was agreed and signed during the state visit of President Xi Jinping of China in October 2019.

Development Cooperation:

China has been assisting Nepal in its development efforts since the establishment of diplomatic relations between the two countries. 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 in order to implement mutually acceptable development projects.

The Chinese assistance to Nepal mainly falls into three types: 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 especially in the areas of infrastructure building, establishment of industries, human resource development, health, education, water resources, sports etc.

The Chinese Government announced 3 billion RMB for 2016-2018 to be utilized in jointly selected reconstruction projects in Nepal. During Rt. Hon. President"s visit to China in April 2019, China pledged to provide 1 billion RMB to the Government of Nepal, and to this end, an Agreement on Economic and Technical Cooperation was signed between the two sides. Likewise, during the visit of Chinese President H.E. Xi Jinping on 12-13 October 2019, China has announced to extend a 3.5 billion RMB grant to Nepal for the period of 2020-2022.

Trade, Tourism and Investment

There are six border points officially opened for trade between Nepal and China, which are as follows:

i. Kodari-Nyalam ii. Rasuwa-Keyrung iii. Yari (Humla)-Purang iv.Olangchunggola-Riwu v.Kimathanka- Riwu vi. Nechung (Mustang)-Lizi

Out of the six border points, only two border points (Kodari-Nyalam and Rasuwa-Keyrung) are in operation.

China remained Nepal"s second largest trade partner with a total trade of NRs. 234.93 billion accounting for 14 % of Nepal"s total trade during the FY2077/78. The volume of total imports was NRs. 233.92 billion whereas the export was worth NRs. 1.01 billion. The total trade deficit with China in FY 2077/78 reached NRs. 232.90 billion. Trade deficit of Nepal with China has been in an increasing trend.

The top ten exports of Nepal to China are wood products; metal products; textiles; mineral products; leather products; wearing apparel; chemical, rubber, plastic; machinery and equipment; vegetable oils and fats; and crops; and the top ten imports of Nepal from China are wearing apparel; textiles; electronic equipment; machinery and equipment; leather products; vegetables, fruits, nuts; chemical, rubber, plastic; manufacturers; metal products; and motor vehicles and parts.

As of Falgun 2078, NRs. 19.70 billion FDI has been received from China which is invested in 1,971 different companies and they have generated more than 93,000 jobs as reported by the Department of Industry.

China is one of the largest source of foreign tourists to Nepal. During the year 2024, 101884 Chinese tourists visited Nepal. The Government of Nepal has waived visa fees for the Chinese tourist effective from 1 January 2016 in a bid to attract a greater number of Chinese tourists to Nepal.

Nepal has direct air link with Chengdu, Lhasa, Kunming, Guangzhou, Chongqing and HongKong SAR of China.

Education and Cultural Cooperation:

China provides scholarships every year not exceeding a total of 100 Nepalese students studying in China. China has offered 67 Scholarships for the academic year 2022-23. As per the understanding reached between Nepal and China during the visit of Nepali Prime Minister in March 2016, China has been providing Chinese Language Training Course to Nepali tourism professionals in Kathmandu.

Various activities have taken place since the bilateral MoU on Cultural Cooperation was concluded in 1999. The Youth Exchange program is instrumental in fostering utmost understanding between peoples of two countries including promoting culture and tourism in each other"s country.

There are sister cities relations among more than a dozen cities of Nepal and CHina. These twin town relationships have been done for the purpose of promoting cultural and commercial ties in the fields of economy, trade, transportation, science and technology, culture, tourism, education, sports and health, personnel, etc.

Regional and International Affairs:

Nepal and China have the tradition of working together in regional and international forums including the UN, WTO, G-77 plus China on matters of mutual interests and concerns. Nepal and China have been supporting each other"s positions and candidacies in various international fora.

China became an observer state in the SAARC in 2005 since which it has been significantly contributing to SAARC programmes and activities.

Nepal joined SCO as Dialogue Partner after signing Memorandum of Understanding (MoU) with Shanghai Cooperation Organization (SCO) Secretariat on 22 March 2016.

China and South Asian countries including Nepal have frequent interactions on the issues of shared interests such as COVID-19 response, poverty alleviation, green development, among others, at the Foreign Ministers" level.

Nepal is the founding member of the Asian Infrastructure Investments Bank (AIIB). The Bank was established in January 2016.