By Our Reporter

Nepal's relationship with China has become one of the most productive foreign ties for the small Himalayan nation. Over the last seven decades, the two nations have built a foundation based on mutual respect, trust, and consistent cooperation. Since the formal establishment of diplomatic relations in 1955 the tie has steadily evolved into a strategic partnership, reinforced by shared cultural history and frequent high-level exchanges. For Nepal, this has meant far more than symbolic goodwill as China has helped build Nepal's infrastructure, expand trade routes, and provide a much-needed counterbalance to India's long-standing political sway in Kathmandu.

Counter-balance

Historically, open borders with India made it Nepal's default trade partner and political influence has still been deep. Over the years, Nepal has suffered periodic blockades, political interference, and the frequent pressure to align policies with New Delhi's interests, compelling Nepal to look northward with more interest. Strengthening ties with China hasn't been about turning away from India, but about creating space to act in its own national interest.

That space has widened in recent decades. China's approach has rarely involved interference in NepalU+2019s internal affairs, instead focusing on trade, development, and infrastructure. Trade volumes speak for themselves. In 2023, Nepal imported goods worth over USD 1.5 billion from China, making it Nepal's second-largest trading partner after India. While the trade balance is tilted heavily in favor of China, the increasing volume of trade still brings benefits to Nepal's economy in terms of access to technology, consumer goods, and industrial equipment.

Visible signs of Chinese cooperation

Some of the most visible signs of cooperation are physical. Chinese assistance has contributed to major infrastructure projects across Nepal, especially international airports and highways. The construction of Pokhara International Airport, inaugurated in 2023 with Chinese support, has significantly improved Nepal's connectivity with the outside world. New airports don't just mean easier travel, they attract tourists, facilitate trade, and create jobs. For a country whose economy leans heavily on tourism and remittances, better connectivity can be a lifeline.

Nepal had proposed 10 specific projects under the framework of the Belt and Road Initiative (BRI), which were formally agreed upon for implementation. However, the pre-feasibility studies for most of these projects remain incomplete. The proposed projects include: the Tokha–Chhahare tunnel road, the Hilsa–Simkot road project, the Kimathanka–Khandbari road and bridge, the Jilong–Kerung–Kathmandu cross-border railway, Amargadhi City Hall in Dadeldhura, the Jilong–Kerung–Rasuwagadhi–Chilime 220kV transmission line, Madan Bhandari University, the Kathmandu Scientific Centre and Science Museum, the China–Nepal Friendship Industrial Park in Damak, and the Jhapa Sports and Athletics Complex.

Among these, China is currently undertaking a feasibility study for the cross-border railway linking Jilong, Kerung, and Kathmandu. Additionally, the two governments have exchanged formal communications to accelerate progress on the Tokha–Chhahare tunnel road and the Hilsa–Simkot road project.
The Belt and Road Initiative (BRI), signed by Nepal in 2017, promised even broader engagement. Although not fully implemented due to geopolitical sensitivities and India's unease with Chinese projects in its neighborhood, the BRI has however opened discussions about cross-border rail links, industrial zones, and improved transport corridors.

Beyond infrastructure and trade, China's support has reached into sectors like agriculture, energy, education, and climate response. In recent years, cooperation has expanded to include health, digital innovation, and disaster preparedness. Recently, after the Lhende flash flood near the Nepal-China border, both countries recognized the importance of climate collaboration, especially as environmental risks rise in the fragile Himalayan region. For Nepal, whose terrain makes disaster vulnerability a constant concern, China's technical support can be life-saving.

China's investments are helping build roads, airports, and trade routes that Nepal could not afford on its own. Chinese scholarships, training programs, and health initiatives are empowering Nepali youth and professionals. And Chinese tourists numbering over 150,000 annually before the pandemic contribute directly to Nepal's tourism economy.

Relation at political level

Equally important is the relationship at political level. Unlike with other powers, ties with China have not been disrupted by government or regime change in Nepal. Governments of various stripes such as monarchs, Maoists, centrists, communists have all kept relations with Beijing stable. Chinese diplomacy in Nepal has largely focused on development rather than dictating domestic politics. Beijing's repeated recognition of Nepal's sovereignty, and Kathmandu's support for the One China policy, have kept the relationship relatively smooth.

Chinese President Xi Jinping's 2019 visit to Nepal was a landmark. It marked the first visit by a Chinese president in over two decades and gave both countries a chance to reset their ties at a more strategic level. Prime Minister KP Sharma Oli's visit to China in 2024 reaffirmed this progress. China invites Nepali leaders, traders, journalists, professionals and important personalities of all hues and stripes to attend various programs in China. These visits have played their roles in steadying relations further. The benefits from relations with China could multiply. With careful planning, Nepal could become a trade transit hub, drawing on its geography to connect two economic giants. For now, the evidence shows that Nepal has gained significantly from its friendship with China economically, diplomatically, and strategically. It has expanded its choices, improved its infrastructure, and found a way to resist one-sided pressure. If future governments build on this foundation with clarity and commitment, Nepal stands to benefit even more.