Breaking India's monopoly over the nation's trade, Nepal and China signed an agreement along with nine other treaties in Beijing, a day after Nepalese Prime Minister KP Sharma Oli began a week-long trip to China following an invitation from his Chinese counterpart Li Keqiang. The PM's maiden visit to the neighbour holds greater significance as Nepal tries to dial down its decades old independence on India. After Madeshi protesters agitated over the adoption of the new Constitution, blocking supply trucks coming in from the southern neighbour, the government has seriously considered revising its trade policies.
The blockade that lasted five months caused huge fuel crisis. The blocking of the Haldia port in Kolkata caused the Nepalese government to look for an alternative. The agreement with China gives an option to use the next nearest Tianjin port in China, 3,000 km from Nepal border. Other agreements include an accord on the construction of a bridge in Hilsa, far west Nepal, that will connect the republic with Tibet. China has also pledged $216 million soft loan to Nepal to construct a regional airport in Pokhara. A Free Trade Agreement has also been signed to boost bilateral trade, along with China agreeing to explore oil and gas resources in Nepal and providing technical and economic support for it.
One of the commercial banks in China has agreed to open an office in Nepal, similarly, Nepalese banks can also open their branches in China. Installation of solar panels in 32,000 Nepalese households have been offered. Agreements in the fields of science and technology, sister-city relations between various Nepalese and Chinese cities, and establishment of Nepal's Consular General Office in Chengdu, China, were also signed, said Gopal Khanal, foreign relations expert to Prime Minister Oli.
