Nepal PM KP Oli in China: Two sides sign 8 pacts; more MoUs expected

Nepal signed eight pacts with China worth $2.4 billion on Wednesday, June 20, the second day of its prime minister, Khadga Prasad Oli's visit to the northern neighbour.

The agreements were signed between the two nations' governments as well as private sectors where Chinese investors will put their money for developing hydroelectricity, water resources, fruit cultivation, etc.

Oli, who is on his first trip to China after becoming the prime minister for the second time in February this year, met Chinese President at Beijing's Great Hall of People on Tuesday, June 19. Oli had visited China once during his short first term as the premier in 2015-16.

The agreement-signing ceremony took place at the Nepal Embassy on Wednesday.

More memoranda of understanding will be signed on Thursday, June 21, following delegation-level talks between Oli and his Chinese counterpart Le Keqiang. The two sides are expected to sign infrastructure projects to deepen their ties, something Nepal's ruling communist party had hoped ahead of Oli's six-day visit.

According to China Global Television Network (CGTN), President Xi said on Wednesday that China is ready to improve cooperation with Nepal in matters of infrastructure connectivity, post-disaster reconstruction, trade and investment under its Belt and Road Initiative - an ambitious global mission that Nepal has agreed to join, irrespective of the reservation of its other big neighbour India.

The Chinese president also said that two neighbours have always abided by the Five Principles of Peaceful Coexistence since the establishment of diplomatic ties between them, the CGTN report added.

He also said China appreciates Nepal's one-China policy and will in turn help it preserve its national independence, sovereignty and territorial integrity.

Oli, whose China visit is only the second international trip in his current prime ministerial term after India in April, said Nepal admired China's development and its positive role in international affairs and thanked it for supporting Nepal's development, the CGTN report added.