Nepal-China Relations: Historical Ties and Future Cooperation

Nepal–China relations have been for ages. About 1600 years ago, Chinese monk Fa Xian and Nepali monk Buddhabhadra visited each other's countries and strengthened religious and cultural ties by translating Buddhist scriptures.

During the Tang Dynasty of China (7th century), the marriage of Nepali princess Bhrikuti to Tibetan King Songtsen Gampo and the construction of the famous White Stupa and other artworks in Beijing by Nepali artist Arniko further strengthened Nepal–China relations.

With the establishment of formal diplomatic relations in 1955, these historical relations have become even stronger. Today, Nepal–China relations are based on mutual trust, respect, cooperation, and shared interests, considered as close as 'nails and flesh'.

During the recent visit of Nepal's Foreign Minister Shishir Khanal to China, the Chinese side reiterated its old saying, 'A close neighbor is better than a distant relative.' Chinese Foreign Minister Wang Yi mentioned Nepal as an important neighbor and diplomatic partner of China and expressed the view that mutual trust and cooperation should be continuously advanced.

Chinese President Xi Jinping has stated that regardless of a country's size, population, economic condition, or social system, China has adopted a policy of expanding relations based on the principles of mutual respect, equality, and peaceful coexistence. He has also expressed China's commitment to transforming Nepal from a landlocked to a land-linked nation.

While giving high priority to relations and cooperation with Nepal, China appears particularly sensitive and vigilant about its national security. In particular, China has expressed concern over the increasing activities of the United States and other Western countries in Nepal. In this context, China expects Nepal to maintain its commitment to the 'One China Policy' and has expressed its view through diplomatic channels from time to time that Nepal's territory should not be used for anti-China activities.

Chinese counterpart Li Qiang, who congratulated Balendra Shah immediately after he became Prime Minister, recalled the glorious history of relations between the two countries. He sent a message expressing readiness to cooperate and support a neighbor connected by beautiful mountains and rivers, bound by age-old neighborly relations, in development issues such as infrastructure, good governance, and cross-border rail, airports, and electricity transmission networks.

According to Chinese diplomats, Beijing has three main interests related to Nepal: Nepal's commitment to the 'One China Policy' and security, an independent foreign policy, and a predictable investment environment. It appears necessary for Nepal to adopt clear, stable, and credible policies in all these areas.

Although China is close, many Nepalis have not had the opportunity to directly understand, see, and experience it. Therefore, in this article, I have also included my experiences and feelings. In 2025, I had the opportunity to stay in Xi'an, Shaanxi Province, China from July 2-15 while participating in the 'Seminar on Custom Management and China–Europe Railway Express'.

The objective of the seminar was to present the concept of modern China and its proposed 'Belt and Road Initiative' to the international community and expand cooperation on the basis of 'win-win' partnership. Theoretical classes provided information about Chinese history, present, and development path, while practical sessions included observation of industries, land ports, sea-ports, and technology-friendly customs systems. It also provided an opportunity to closely understand Chinese society, culture, and work style.

As a student interested in international diplomacy and development studies, I had some preconceptions about China. However, the dedication, hard work, and discipline of the country impressed me more than I expected. These qualities are not artificial but are intrinsically linked to the Chinese social and cultural lifestyle.

The warm welcome and farewell by young Chinese men and women at the airport, and the sight of a young woman named Annie becoming emotional during the farewell, are still fresh in my memory. Along with the excitement of returning home, the memory of my eight-year-old daughter made me emotional, and that warmth deepened my understanding of China. China is vast not only geographically and demographically but also in terms of customs and culture.

Shaanxi Province in China is considered important in terms of education, research, and industrial development. It is economically very strong. Its provincial capital, Xi'an, is known as a historical and cultural center of China. The Yangling Agricultural High-tech Industry Demonstration Zone is a major center for modern agricultural technology, scientific research, and agricultural knowledge exchange. Similarly, Northwest Polytechnical University in Xi'an is one of China's prestigious universities for research and education in high-tech fields such as aerospace, aviation, and marine engineering.

Given China's development experience, technology, and capabilities, Nepal should maximize benefits from cooperation with neighboring China. China can be an important development partner for Nepal in its pursuit of rapid development and prosperity. It would be in Nepal's interest to effectively utilize China's economic, technical, and managerial experience in strategic sectors such as highways, railways, airports, tunnels, hydropower, transmission networks, industrial infrastructure, information technology, and data centers.

In the last 10 months, the trade deficit has increased to 14 trillion rupees. China is the second-largest trade deficit after India. To gradually reduce this, Nepal needs to increase exports of Himalayan herbs, fruits, and other high-value agricultural products to China. For this, border crossings such as Kodari-Nyalam, Rasuwa-Kerung, Yari-Purang, Olangchunggola-Riu, Kimathanka-Riu, and Nechung-Lizi should be operated and upgraded in phases to facilitate trade.

Similarly, cooperation can be expanded between Nepal and China in the Himalayan region on climate change, biodiversity conservation, and natural disaster management such as glacial lake outburst, glacial melt, and landslides. Such cooperation will contribute to mitigating environmental challenges as well as strengthening security and stability in border areas. China has periodically expressed its expectation for peace, stability, and security to prevail in Nepal's northern border, and Nepal has also consistently reiterated its commitment to this.

Nepal's geographical structure is suitable for modern agriculture. Nepal's topography is not a curse but a direct boon. The traditional agricultural system is our hindrance. It is necessary to expand cooperation with China in agricultural science, technology, and innovation and adopt modern and hybrid agricultural systems. Nepal should move forward with a strategy to increase production using Chinese technology and experience and reduce the trade deficit by exporting high-value agricultural products to China.

China is 62.2 times larger than Nepal geographically and 47.3 times larger in population. According to the World Economic Outlook, China is the world's second-largest economy with a Gross Domestic Product of 20.85 trillion US dollars. Similarly, based on purchasing power parity, China is the world's largest economy.

In terms of military power, China ranks third in the world. According to the report of the World Intellectual Property Organization, China is also first in the world in the fields of science, technology, and innovation. China has transformed from a low-cost manufacturing economy to a high-tech-based economy. By developing the Shenzhen-Hong Kong-Guangzhou cluster as a world-class science and technology center, China is competing with Silicon Valley in the US and major innovation centers in Japan. In terms of time, cost, market, and visa procedures, China can be a suitable destination for opportunities for Nepalis, especially youth. Therefore, the opportunities obtained from it should be fully utilized.

Given that Chinese President Xi Jinping has already announced the concept of transforming Nepal from a landlocked to a land-linked country, Nepal should be established as a land-linked nation by connecting northern border areas including Kerung and Hilsa through rail, road, and electricity transmission networks. Otherwise, the saying 'The tiger is gone, wisdom has arrived' may come true.

Considering the possibility of fluctuations in government-to-government relations in the changing geopolitical landscape of the world, it is necessary to further strengthen track-two diplomacy. For this, civil-to-civil relations should also be strengthened by making bilateral trade associations, social and cultural organizations, intellectual forums, and business organizations more active.

Bangladesh has adopted a strategy of importing raw materials from China and India, producing processed goods, and exporting them to Europe. Due to Nepal's lack of easy access to the sea, it may be difficult to fully implement the same model. However, Nepal should adopt a strategy of increasing domestic production of daily necessities, exporting high-value goods, and adding value to available raw materials for export.

It is Nepal's need today to take advantage of the opportunities that can be obtained through cooperation with this giant neighbor. If not now, when will Nepal benefit from its giant neighbor China?

(The author is a lawyer.)