China pledges support for Nepal’s economic transformation under new government

KATHMANDU: China has pledged to work with Nepal’s new government to support the country’s economic transformation and development, Chinese ambassador to Nepal, Zhang Maoming, said on Tuesday.

Briefing selected journalists at his office about the fourth session of the 14th National People’s Congress of China, Ambassador Zhang said Beijing stands ready to strengthen bilateral relations and implement agreements reached during President Xi Jinping’s 2019 visit to Nepal. He reiterated China’s support for safeguarding Nepal’s sovereignty and territorial integrity.

Beijing expressed confidence that a stable government to be formed for the next five years will fulfil the long-standing aspirations of the Nepali people for prosperity and good governance. China said Nepal’s development ambitions can be realised by enhancing cooperation and partnerships in tourism, investment, infrastructure and green development.

Ambassador Zhang highlighted tourism, investment, infrastructure and green development as priority areas. He said improving tourism-related infrastructure could attract more Chinese tourists and that prioritising tourism as a key driver of economic growth could significantly accelerate Nepal’s development in a short period.

He noted that Chinese investors are interested in Nepal’s hotel and restaurant sectors but face challenges related to investment security, policy clarity and bureaucratic hurdles. He added that a one-stop policy framework for trade and investment could attract more Chinese investors.

The ambassador pointed to tea processing, packaging and branding as another avenue for economic progress with potential for Chinese cooperation, and said Nepal could benefit from China’s technological advancements while stressing the importance of promoting green development and related industries.

Expressing confidence that the Belt and Road Initiative (BRI) would support Nepal’s economic development, he said cooperation could be expanded in agriculture, infrastructure development, improving living standards and investment. He emphasised the need to fully utilise tariff concessions provided by China and expressed readiness to support exports of a wider range of Nepali products beyond agricultural goods.

On the Kalapani issue, Ambassador Zhang said it is a bilateral matter between Nepal and India that should be resolved through dialogue and consultation. “It is a dispute between Nepal and China. China attaches great importance to Nepal and we understand Nepal’s position,” he said, suggesting the Nepal-India mechanism at the level of foreign secretaries could be activated to find a solution.

Nepal-China diplomatic and economic relations, established in 1955, have grown stronger in recent years and are based on mutual respect, sovereignty, non-interference in internal affairs and peaceful coexistence. Since Nepal joined the BRI in 2017, collaboration in infrastructure, trade and connectivity has further strengthened, and more than 20 agreements signed during President Xi’s 2019 visit upgraded ties to a Strategic Partnership of Cooperation.

Bilateral relations have increasingly moved towards multi-dimensional cooperation under the Trans-Himalayan Multi-Dimensional Connectivity Network, which aims to transform Nepal from a landlocked to a land-linked country. Key projects include the proposed Kyirong–Kathmandu railway, upgrading of the Kodari–Zhangmu road and expansion of north–south economic corridors, while efforts continue to enhance cross-border trade, expand dry ports and improve air connectivity.

The cooperation has had positive impacts in energy, hydropower, health, education, green development and cultural sectors, and coordination has been strengthened in border management, security cooperation and control of illegal activities. The growing strategic importance of Nepal–China relations is expected to contribute to trade expansion, economic transformation and diversification of transit routes, reducing dependence on a single transit system.

(With inputs from RSS)