20 October 2026, NIICE Commentary 12823
Prof. Dr. Zhang Jiadong
The Himalayas stretch across the landscape, majestic and grand, serving as both a natural geographical boundary and a bond of friendship that connects China and Nepal. For over a millennium, the two nations have engaged in exchanges, from ancient pilgrimages by monks to modern strategic collaborations, consistently upholding the principles of equality, respect, and mutual benefit. In 2025, China and Nepal celebrate the 70th anniversary of their diplomatic relations, a friendship that has deepened through the tides of time, weathered challenges, and emerged as a model of amicable cooperation between nations. Standing at this new historical juncture, the two countries are forging ahead with a broader vision and resolute steps, working together to build a trans-Himalayan community with a shared future, injecting enduring momentum into regional peace and prosperity.
Historical Evolution of China-Nepal Relations
The foundation of China-Nepal relations is rooted in a millennium of history, with cultural, religious, and trade exchanges laying a solid groundwork for bilateral ties. From ancient folk interactions to modern institutionalized cooperation, the relationship has evolved through continuity, demonstrating remarkable vitality and adaptability.
Ancient Interactions: The Dawn of a Millennial Friendship
The origins of China-Nepal exchanges can be traced back at least to the 5th century, when the Eastern Jin dynasty monk Faxian traveled to Nepal on his quest for Buddhist scriptures, leaving behind valuable historical records. Ancient Chinese texts describing the “Land of the Snow Mountains” not only depicted Nepal’s geographical features but also bore witness to early interactions across the Himalayas. In the 7th century, Tang dynasty monk Xuanzang, returning from his pilgrimage, documented Nepal’s prosperity as a hub of Buddhist culture. During the same period, the marriage of Nepalese Princess Bhrikuti to the Tibetan King Songtsen Gampo indirectly facilitated exchanges between the Tang dynasty and Nepal, with Buddhism serving as a spiritual bridge between the two peoples.
During the Song and Yuan dynasties, trade further enriched bilateral interactions. Nepalese handicrafts and spices reached China via the Silk Road, while Chinese manufactured goods and tea were introduced to Nepal. In the 13th century, exchanges between Yuan dynasty envoy Phagpa and Nepalese artisan Araniko led to the spread of Nepalese architectural art to sites like the White Pagoda Temple in China. Although these folk exchanges did not constitute formal diplomacy, they planted the seeds for mutual understanding between the two peoples.
Modern Diplomacy: From Establishment to Strategic Partnership
On 1 August 1955, China and Nepal formally established diplomatic relations, marking the beginning of institutionalized bilateral ties. Against the backdrop of the Cold War, Premier Zhou Enlai’s Five Principles of Peaceful Coexistence, proposed at the Bandung Conference, were warmly endorsed by Nepal’s then-King Mahendra. These principles not only became the political cornerstone of China-Nepal relations but also set a precedent for cooperation among developing nations. In 1956, the two countries signed an economic assistance agreement, with China providing grant aid to Nepal, focusing on infrastructure development. During his 1960 visit to Nepal, Premier Zhou pledged “sincere support for Nepal’s development,” sowing the seeds for mutually beneficial cooperation.
In the 1970s, China-Nepal relations deepened through infrastructure collaboration. The Kathmandu-Lhasa Highway (China-Nepal Friendship Highway), completed in 1967, significantly facilitated trade and people-to-people exchanges. This highway not only shortened geographical distances but also became a symbol of bilateral friendship. In the 1980s, China increased its assistance, constructing landmark projects such as the Bhaktapur Hospital and the Birendra International Conference Center of New Baneshwor, injecting vitality into Nepal’s socioeconomic development. During his 2002 visit to Nepal, then-Chinese Premier Wen Jiabao described China-Nepal cooperation as a “model of South-South cooperation,” while Nepalese leaders repeatedly emphasized China as a “trustworthy partner.”
Entering the 21st century, China-Nepal relations reached new heights. In 2019, Chinese President Xi Jinping visited Nepal, and the two sides announced the elevation of their relationship to a “Strategic Partnership of Cooperation for Development and Prosperity.” Leveraging the Belt and Road Initiative (BRI), they signed agreements on projects such as the China-Nepal cross-border railway, power connectivity, and speeding up the construction of Pokhara International Airport, marking a qualitative leap in bilateral ties. In 2023, Nepalese Prime Minister Pushpa Kamal Dahal visited China, where both sides reaffirmed their commitment to deepening BRI cooperation in infrastructure, energy, and cultural exchanges. In 2025, as China and Nepal mark 70 years of diplomatic ties, Chinese President Xi Jinping and Nepalese President Ram Chandra Poudel exchanged congratulatory messages, reaffirming the core of their friendship rooted in mutual trust, equality, and mutual benefit. Both leaders expressed their commitment to using the 70th anniversary as an opportunity to advance bilateral relations through innovation and continuity, contributing further to regional peace and prosperity.
Key Factors Influencing China-Nepal Relations
The development of China-Nepal relations has not been without challenges but has progressed through the interplay of positive drivers and constraining factors. The natural advantages of geography, culture, and economic complementarity provide a solid foundation for cooperation, while geopolitical dynamics, external interference, and Nepal’s domestic uncertainties pose challenges.
Geographical Proximity as a Natural Foundation
China and Nepal share a 1,414-kilometer border, with the Himalayas serving as a natural barrier yet never hindering exchanges between their peoples. The China-Nepal Friendship Highway, completed in 1967, the cross-border optical cable launched in 2018, and the Kyirong port, which opened in 2021 have significantly enhanced connectivity. According to Chinese customs data, bilateral trade reached USD 2.3 billion in 2024, a 15% year-on-year increase, with over 70% facilitated through land ports. These infrastructure projects have not only boosted the flow of goods and people but also transformed geographical proximity into a cooperative advantage, forming a material pillar of bilateral relations.
Cultural Affinity as an Emotional Bond
Buddhism is a shared spiritual treasure of China and Nepal. From the pilgrimages of Faxian and Xuanzang to modern Buddhist forums, religious exchanges have remained uninterrupted. Lumbini, Nepal, the birthplace of Lord Buddha, attracts numerous Chinese Buddhist pilgrims, while China’s Mount Wutai and Mount Putuo are popular destinations for Nepalese monks. In 2024, the joint “Buddhism and Civilizational Dialogue” forum drew over 200 scholars and religious figures from both nations, further strengthening cultural bonds.
In education, China provides numerous scholarships to Nepalese students annually, with over 6,000 having studied in China to date. Since its establishment in 2007, the Confucius Institute in Kathmandu has trained over 20,000 Nepalese learners, promoting Chinese language and culture. Additionally, cultural festivals, film exhibitions, and art exchanges have deepened mutual understanding at the grassroots level.
Economic Complementarity as a Catalyst for Cooperation
As developing nations, China and Nepal have complementary economic needs and strengths. China’s expertise in infrastructure, manufacturing, and technology aligns with Nepal’s demand for development resources and funding. According to World Bank data, Nepal’s GDP grew by 4.8% in 2024, driven largely by infrastructure investment, with Chinese-aided projects accounting for over 30% of such investments. For instance, the Chinese-built Pokhara International Airport, operational since 2023, has a capacity of 1 million passengers annually, significantly boosting Nepal’s tourism industry.
Nepal’s specialty agricultural products (such as tea and medicinal herbs) and tourism resources offer new opportunities for the Chinese market. In 2024, Nepal exported 5,000 tons of tea to China, a 20% increase from the previous year, which was sold nationwide via Chinese e-commerce platforms. Under the BRI framework, China’s aid, grants, and technical support have fueled Nepal’s hydropower development, road construction, and industrial park projects.
Although China-Nepal relations benefit from natural cooperative strengths, they also face challenges. Nepal’s heavy economic reliance on India (62.3% of trade in 2024), pursuit of neutrality between China and India, and domestic political instability create obstacles for deeper cooperation. These issues, stemming from Nepal’s geopolitical constraints and internal volatility, complicate bilateral progress. China, in response, adopts a balanced South Asia policy, promoting regional connectivity via the Belt and Road Initiative while respecting India’s sensitivities. By fostering multilateral cooperation and economic diversification, China aims to mitigate Nepal’s dependencies, strengthen bilateral trust, and advance a stable, cooperative framework across South Asia.
Trends and Prospects
At the 70th anniversary of diplomatic relations, China-Nepal ties face new opportunities for growth. Amid complex global dynamics and deepening regional cooperation needs, both nations should adopt a strategic and pragmatic approach to advance their relationship to deeper and broader dimensions, jointly building a trans-Himalayan community with a shared future.
Consolidating and Deepening Existing Relations
China and Nepal should continue to uphold the Five Principles of Peaceful Coexistence, strengthening political mutual trust through high-level visits and institutionalized dialogues. The 70th anniversary in 2025 is a key opportunity, with both sides organizing a series of celebratory events to enhance strategic consensus.
On cooperation projects, efforts should focus on accelerating the implementation of signed agreements, ensuring tangible progress on flagship initiatives like the China-Nepal cross-border railway and power connectivity. The successful operation of Pokhara International Airport provides a model for future projects, and both sides could collaborate to upgrade other Nepalese airports, enhancing Nepal’s status as an international tourism hub.
In trade, efforts should aim to optimize trade structures and reduce Nepal’s reliance on single markets. China could encourage Nepalese specialty products to enter its market by lowering tariffs and streamlining customs procedures. High-value Nepalese agricultural products like saffron and honey could be promoted through platforms like the China International Import Expo. Additionally, both sides could explore establishing a China-Nepal border free trade zone to foster cross-border e-commerce and small-and medium-enterprise cooperation, further unlocking trade potential.
Innovative Thinking to Build a Trans-Himalayan Community with a Shared Future
a. Deepening Cultural Exchanges
Cultural exchanges are the spiritual bond of a shared future community. Both sides should leverage Buddhist culture to organize events for the 70th anniversary, such as a joint “Lumbini-Mount Wutai Buddhist Cultural Festival” involving monks, scholars, and tourists from both nations.
In education, China could increase scholarship quotas for Nepalese students, focusing on fields like engineering, medicine, and information technology to cultivate Nepal’s industrial talent. The Confucius Institute in Kathmandu could expand to other cities like Pokhara and Lumbini, are broadening Chinese language education. Additionally, medical exchange programs, such as sending Chinese medical teams to remote Nepalese regions or inviting Nepalese doctors for training in China, could enhance Nepal’s public health capacity.
b. Expanding Economic and Trade Cooperation
The BRI provides a broad platform for China-Nepal economic cooperation. Both sides should shift from traditional aid models to a balanced approach emphasizing trade and investment, supporting Nepal’s integration into global value chains. For instance, Chinese companies could invest in Nepal’s special economic zones, focusing on textiles, food processing, and renewable energy to create jobs and drive technology transfer.
Tourism cooperation is another priority. Nepal’s world-class attractions, including the best routes to Mount Everest and Chitwan National Park, draw significant interest. Both sides could leverage events like “Nepal Tourism Year” to launch cross-border tourism routes, such as a “Himalayan Pilgrimage Journey,” attracting more Chinese visitors. Nepal could also adopt China’s expertise in digital tourism management to improve scenic area services and extend visitor stays.
c. Strengthening Ecological and Water Resource Cooperation
The Himalayas are a shared ecological barrier and a vital source of water resources. Both sides should establish a trans-Himalayan ecological protection mechanism, conducting joint research on glacier monitoring, biodiversity conservation, and disaster early warning. A “Himalayan Climate Change Research Center” could be established to share satellite remote sensing data, addressing challenges like glacial melting and extreme weather. In water resources, both sides should regulate the development and use of cross-border rivers, establishing mechanisms for information sharing and joint management. China and Nepal have initiated cross-border hydrological monitoring, which could be expanded to comprehensive river basin governance. China could support Nepal in building small-scale hydropower projects that balance power generation and flood control needs. On one hand, this could boost Nepal’s economic revenue; on the other, cross-border electricity trade could ensure stable power supplies in China’s border regions near Nepal.
d. Enhancing Coordination in International Affairs
In global governance, China and Nepal should strengthen collaboration to safeguard the interests of developing nations. Nepal supports China’s Global Development Initiative (GDI), Global Security Initiative (GSI), and Global Civilization Initiative (GCI), while China can help Nepal amplify its voice in platforms like the United Nations and the World Trade Organization (WTO). In climate change negotiations, both sides could jointly advocate for more international funding to support Himalayan ecological protection.
In regional cooperation, China and Nepal could deepen ties with other South Asian nations through platforms like the South Asian Association for Regional Cooperation (SAARC) and the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). China’s vision of an “Asian Community with a Shared Future” aligns with Nepal’s regional cooperation goals, and both sides could jointly promote the development of cross-border railway, energy, and digital networks, contributing to South Asia’s prosperity and stability.
Conclusion
Over 70 years of shared trials and triumphs, China-Nepal relations have been refined and elevated through the currents of history. From the footsteps of ancient monks to the blueprints of modern railways, from the resonance of Buddhist culture to the collaboration under the BRI, both nations have exemplified equality, mutual respect, and win-win cooperation. Standing at the new starting point of their 70th diplomatic anniversary, China and Nepal should build on strategic mutual trust, advance practical cooperation, and foster people-to-people bonds to overcome geopolitical challenges and deepen the trans-Himalayan community with a shared future.
As long as both nations remain true to their original aspirations and walk hand in hand, this millennial “bridge of friendship” will grow ever stronger, and this embrace across the mountains and seas will become ever closer. The new chapter of China-Nepal cooperation will not only benefit their people but also inject fresh hope and momentum into global peace and development.
Prof. Dr. Zhang Jiadong is the Director of the Centre for South Asian Studies and Professor of the Center for American Studies, Fudan University, Shanghai, China.
This article was originally published in the book “Seventy Years of Nepal-China Relations: A Model for Civilisational Friendship” co-edited by Prof. Dr. Zhang Jiadong, Director, CSAS, Fudan University, Shanghai, China & Bibek Dhoj Thapa, Program Coordinator & Research Associate, NIICE, Nepal.
