Nepal and China have solidified their bilateral relationship through a series of agreements, signaling a commitment to enhance connectivity projects between the two nations. These agreements, signed during a meeting between Prime Minister Pushpa Kamal Dahal Prachanda and President Xi Jinping in Beijing on September 26, include the ambitious cross-border railway from Tibet's capital Lhasa to Kathmandu.

Notably, none of the agreements explicitly pertains to China's Belt and Road Initiative (BRI) projects in Nepal. However, the joint statement issued after the meeting underscored Nepal's commitment to Tibet's territorial integrity, stating that Nepal "will never allow any separatist activities against China on Nepal's soil." In response, China expressed its firm support for Nepal's independence, sovereignty, and territorial integrity.

While Nepal refrained from officially endorsing China's Global Security Initiative (GSI), it did agree to aspects related to security cooperation, particularly concerning Chinese-occupied Tibet and Tibetans living in Nepal. The joint statement indicated joint boundary inspections, law enforcement cooperation, information exchange, capacity building, and cooperation on training between their law enforcement institutions.

Nepal expressed support for China's Global Development Initiative (GDI) and suggested consideration for joining the Group of Friends of the GDI. Additionally, both nations committed to accelerating consultations to finalize the text of an already delayed BRI implementation plan.

Despite not achieving the expected opening of the Korala border crossing during Prime Minister Dahal's visit, which could significantly boost bilateral trade and Nepal's economy, the agreements highlight a mutual interest in enhancing connectivity, including ports, roads, railways, airways, and grids.

This joint statement reflects Nepal's careful balancing act, emphasizing collaboration on development projects while maintaining a cautious approach to security cooperation. The relationship underscores Nepal's strategic importance to China's foreign policy, particularly in the context of China's ambitious initiatives under President Xi's third term. The focus remains on fostering economic ties and improving connectivity, laying the groundwork for deeper cooperation between the two nations.