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Nepal and the People's Republic of China have signed a Memorandum of Understanding (MoU) related to cooperation and collaboration in various eight areas including trade promotion and exchange of technical assistance in the presence of the Prime Ministers of both countries today.

The MoU on mutual collaboration was inked after the bilateral meeting between Prime Minister KP Sharma Oli and Chinese Premier Li Qiang at the Great Hall of the People.

Prime Minister Oli is currently in Beijing in connection with a four-day official visit to China.

The Chinese People's Liberation Army presented a guard of honor to PM Oli before the bilateral meeting.

The Nepali delegation led by Prime Minister Oli arrived in the Chinese capital on Monday.

US Assistant Secretary of State for South and Central Asian Affairs Donald Lu is arriving in Nepal.

Lu will travel to India, Sri Lanka, and Nepal from December 3 to December 10, according to a media note issued by the US Department of State. His trip will strengthen cooperation with key partners in South Asia to promote regional prosperity and security.

Assistant Secretary Lu will conclude his trip in Kathmandu, Nepal, meeting with senior leaders to advance cooperation on environmental protection, women’s empowerment, and sustainable development. 

He will meet with youth leaders to gain insights into their vision for the future of US-Nepal relations. 

Additionally, discussions will emphasize the importance of cultural preservation, recognizing Nepal’s rich heritage as a cornerstone of its identity and a key driver of its tourism and economy, reads the note.

In New Delhi, India, Assistant Secretary Lu will support US-India collaboration in the Indo-Pacific and beyond.  He will join Assistant Secretary of State for the Bureau of East Asian and Pacific Affairs Daniel Kritenbrink to lead US participation in the US-India East Asia Consultations. 

The Consultations, along with separate meetings with senior Indian officials, will provide an opportunity to exchange perspectives on global and regional issues.

On December 5, Assistant Secretary Lu will travel to Colombo, Sri Lanka, to advance US-Sri Lankan joint efforts to promote sustainable economic growth, combat corruption, and strengthen people-to-people ties, the note further reads.

USAID Deputy Assistant Administrator Anjali Kaur and Department of the Treasury Deputy Assistant Secretary Robert Kaproth will join the Assistant Secretary to meet with senior government officials from Sri Lanka’s new administration and representatives from civil society. 

Discussions will deepen ties with the new government, support its efforts to combat corruption, and explore how the United States can support Sri Lanka’s governance and economic reform agenda through tailored technical assistance, capacity building, and development programs.

Chinese Premier Li Qiang welcomed Prime Minister KP Sharma Oli at the Great Hall of the People in Beijing today. PM Oli is currently on an official visit to China.

On the occasion, the Chinese Liberation Army accorded a 'guard of honor' to PM Oli.

The welcome ceremony was attended by the Chinese leaders as well.

PM Oli introduced the Nepali delegation members on the occasion, while the Chinese Premier also introduced his leaders.

Later, the bilateral meeting and signing ceremony are scheduled between the two Prime Ministers. PM Oli is holding a meeting with Chinese President Xi Jinping today itself.

The Nepali delegation led by Prime Minister Oli arrived in China on Monday.

The entourage comprises PM's spouse Radhika Shakya, Foreign Minister Dr Arzu Rana Deuba, PM's chief advisor Bishnu Rimal, PM's economic and development advisor Yubaraj Khatiwada, federal lawmakers, chief secretary, high level government officials, private sector representatives and media persons.

Prime Minister KP Sharma Oli began his four-day official visit to Beijing on Monday at the invitation of his Chinese counterpart, Premier Li Qiang. This marks Oli’s first bilateral foreign trip since assuming office for the third time in July, signaling a significant step in Nepal-China relations.

During the visit, Oli is set to meet Chinese President Xi Jinping and hold bilateral talks with Premier Li. Discussions will focus on mutual interests, including connectivity, infrastructure development, trade and transit, energy cooperation, tourism, and fostering people-to-people ties, according to Nepal’s Ministry of Foreign Affairs.

The two countries are also expected to sign some key agreements. Notably, China will provide a $20mn grant to Nepal, alongside a new bilateral development cooperation framework to be implemented from 2025 to 2029. Projects such as the Tokha-Khahare Tunnel Road, the Special Economic Zone at the Korala border, and the feasibility study for a cross-border railway line are likely to advance, Information and Technology Minister Prithvi Subba Gurung said. Oli has chosen China over India as his initial foreign destination, breaking the longstanding practice of Nepali prime ministers beginning their tenure with a visit to India. 

Oli’s choice to visit China first rather than India is “not unexpected, but rather a reflection of the increasing policy choices of South Asian countries,” Lin Minwang, a deputy director of the Center for South Asian Studies at Fudan University, told the Global Times on Sunday. He further noted after coming to power, Maldives President Mohamed Muizzu also chose to visit China first instead of India, and other South Asian countries are actively developing relations with China. “This reflects changes in Nepal's domestic politics and its policy toward China.”

Besides choosing China for his first official trip, Oli’s visit is drawing attention for other reasons as well. One of them is China’s Belt and Road Initiative (BRI). 

A task force from the two parties has revised the draft of the BRI implementation plan initially proposed by the Chinese side in 2020. The document, now titled Framework for Cooperation instead of BRI Implementation Plan, has been sent to the Chinese side for initial negotiations, though it is yet to be finalized.

This trip comes at a time when China is pushing to strengthen BRI cooperation. There are concerns over what sort of agreement will be signed with Beijing on BRI on which India and western countries are cautioning Nepal to maintain transparency and avoid possible debt burden. Domestically, there are also suspicions that the coalition of Nepali Congress and CPN-UML could crack, as two parties have divergent views on how to deal with China. Oli has a history of fostering strategic agreements with China, including the landmark Transit and Transport Treaty of 2016. 

China’s Foreign Ministry Spokesperson, Mao Ning, highlighted the importance of Oli’s visit in strengthening bilateral ties. “Despite changing international and regional dynamics, China-Nepal relations have grown steadily over the past 69 years, exemplifying equality and win-win cooperation between countries of different sizes,” she said. Mao emphasized deepening strategic trust, advancing high-quality BRI cooperation, and achieving progress in the China-Nepal partnership.