Nepal and China have signed a joint communiqué, laying the foundation for new agreements on fuel trade and extradition.
The 15-point communiqué was finalised in Beijing just hours before Prime Minister KP Oli, who is on a week-long China visit, flew to Hainan to attend the Boao Forum for Asia. Last month, when Oli visited New Delhi for a week-long state visit, Nepal and India did not issue a joint statement.
Through the communiqué, China, one of the first countries to welcome Nepal's new constitution last September, once again recognized the charter in hopes that it will usher a new era of peace and prosperity, while Nepal reiterated its 'one China' policy. During Oli's Delhi visit, India's Prime Minister Narendra Modi described Nepal's constitution as 'an important achievement' but did not welcome it. Instead, he said the success (of the Nepali constitution) would depend on 'dialogue and consensus'.
Oli was criticised for dropping the agenda of a fuel trade deal with China just days before flying to Beijing, but he tried to salvage his nationalist image by persuading his Chinese counterpart to include it in the joint communiqué. The two countries will soon sign a petroleum trade deal under which Nepal will be importing one-third of its fuel needs from China.
Oli was under pressure to diversify Nepal's trade and imports away from India in the wake of a five-month Indian blockade that created a humanitarian crisis in the earthquake-devastated landlocked country.
The two countries have also agreed to sign an extradition treaty – something that China had long been pressing for to curb Tibetan activities in Nepal. China has also agreed to carry out a feasibility study for the extension of the Chinese railway into Nepal. China is planning to link Kerung, the nearest Chinese trade point for Nepal, with its mainland by 2020 and Kathmandu is trying to persuade Beijing to extend it further down to Pokhara and Lumbini.