China is Nepal`s second largest trading partner. In 2017/18, total exports to China totaled more than $23 million. Over the same period, imports from China exceeded $1.5 billion. Nepal`s trade deficit with China is growing. Although China has granted more than 8,000 Nepalese products a zero tariff import facility since 2009, Nepal has not been able to reduce the trade deficit. Nepal regularly participates in various exhibitions and exhibitions in China. Nepal-China is a regular semi-annual event organized by both sides to improve trade interaction and promote economic cooperation between Nepal and ART, China. Nepal participated in the China International Import Expo in Shanghai in November 2018. The 16th China Tibet Economic and Trade Fair was held in Lhasa from October 24 to 29, 2018. However, despite numerous statements by Kathmandu politicians in favour of diversifying Nepal`s trade and transit, there has not even been advance planning. At a meeting following the agreement on 13 October 2019, China declared itself ready to carry out an on-site assessment, while Nepal accepted environmental and legal approvals. Nothing has happened since.

Relations between Nepal and Tibet date back centuries, with the Sherpa, Gurung and Thakali people in Nepal having close linguistic, cultural, marital and ethnic relations with the Tibetan people. However, human ties between these groups have been affected since 1950, after Tibet`s accession to China led to the regulated border between Nepal and Tibet (within the framework of China). Despite the volatility of political scenarios in the vicinity of Nepal and within Nepal itself, the influence of Buddhism remains strong in the daily lives of Nepalis living in the Himalayan region. The Buddhist monarchy of the kingdom of Lo (Upper Mustang), formerly part of the Tibetan Empire, but now in Nepal, did not end until 2008. [7] However, the territory of Lo Manthang remains virtually limited to foreigners. 14. Both sides considered that President Xi Jinping`s state visit to mark the 70th anniversary of the creation of the People`s Republic of China in Nepal marked the beginning of a new era in China-Nepal relations and was an important milestone in the history of friendly cooperation between the two countries. The Chinese side would like to sincerely thank the Nepalese government and its people for their warm and friendly welcome. During the visit of the Prime Minister of Rt. Hon to China in June 2018, a joint statement of fourteen points was made by the two parties and fourteen agreements were signed between the two governments, including a cooperation agreement on railway projects.

In addition, nine agreements have been signed between state and private Nepalese companies/companies and their Chinese partners.