At the invitation of Premier Wen Jiabao of the State Council of the People's Republic of China, Prime Minister Madhav Kumar Nepal of the Federal Democratic Republic of Nepal paid an official visit to China from December 26 to 31, 2009.
During the visit, Prime Minister Nepal called on President Hu Jintao and National People's Congress Standing Committee Chairman Wu Bangguo, and held talks with Premier Wen Jiabao. In a sincere and friendly atmosphere, the leaders of the two countries had an in-depth exchange of views and reached extensive understanding on the development of China-Nepal relations as well as on international and regional issues of mutual interest.

1. The two sides reviewed the time-honored China-Nepal friendly relations and exchanges, and noted with satisfaction that since the establishment of the diplomatic relations in 1955, China-Nepal relations have withstood changes of the international situation and have been growing in a consistent, steady and healthy manner. The characteristics of the relationship are equality, harmonious coexistence and ever-lasting friendship.
The two sides maintained that good neighborly friendship and deepening of mutually beneficial cooperation serve the fundamental interests of the two countries, meet the common aspirations of the two peoples and are conducive to peace and development in the region and the world at large. The two sides decided to establish and develop a China-Nepal Comprehensive Partnership of Cooperation featuring ever-lasting friendship on the basis of the Five Principles of Peaceful Coexistence.
The two sides agreed to respect each other's independence, sovereignty and territorial integrity, as well as each other's social system and development path chosen in the light of their respective national conditions, and respect and understand each other's major concerns and core interests. The two sides will adhere to the principle of peaceful coexistence, non-alignment and non-intervention in each other's internal affairs, develop all-round friendly exchanges and cooperation on the basis of equality and mutual benefit, share development experience, and embrace opportunities, add vigor to their good-neighborly and friendly cooperation, enhance ever-lasting friendship and achieve common development.
The two sides agreed to further promote exchange of high-level visits and contacts at all levels and make full use of the existing mechanisms, including the diplomatic consultation, the China-Nepal Joint Economic Committee Meeting, the Non-governmental Cooperation Forum to expand exchanges and cooperation among government departments, parliaments, parties, local governments and business communities of the two countries.

2. Both sides believed that economic and trade cooperation is an important part of the China-Nepal Comprehensive Partnership of Cooperation. The two sides agreed to further intensify cooperation in trade, investment, information technology, transportation, agriculture, infrastructure development, poverty alleviation and other fields on the basis of equality and mutual benefit. The leaders also agreed to direct the Bilateral Consultative Mechanism between the two countries to review all dimensions of our bilateral cooperation, explore new areas of cooperation, coordinate and facilitate actions, and make recommendations for further consideration at the higher levels.
The Nepalese side expressed thanks to the Chinese side for the long-standing valuable assistance for Nepal's economic development, extended a warm welcome to Chinese businesses to actively participate in hydropower construction and infrastructure development in Nepal and expressed readiness to cooperate with China to discuss the establishment of special economic zones in Nepal and attract Chinese companies for investment and development there.
The Chinese side stated that the Chinese Government encourages and supports competent and well-established Chinese companies to invest in Nepal. The Chinese side will provide necessary support and assistance to the Nepalese side in hydropower construction, infrastructure development,health, education, human resources development and other fields in the light of the economic and technical feasibilities of relevant projects. The Chinese side is ready to continue providing assistance to Nepal within its ability, and further carry out bilateral economic and technical cooperation and personnel exchanges to make positive contribution to its economic development in the changed context of Nepal.
Both sides expressed satisfaction with the implementation of various projects under Chinese assistance in diverse fields for the socio-economic development in Nepal. The Nepalese side stated that the continued and enhanced level of Chinese cooperation extended in the current transitional phase would be of additional significance to the people of Nepal. The Chinese side stated that China is mindful of the development challenges faced by Nepal and will provide appropriate encouragement, incentives as well as concessional financing to mutually agreed projects to the best of its ability. The Nepalese side expressed sincere appreciation for the kind gesture and understanding.
The Chinese side stated that it will gradually provide to Nepal zero-tariff treatment to 95% of the products in accordance with its commitment made at the United Nations High-Level Event on the Millennium Development Goals. The two sides agreed to take measures to expand the bilateral trade and achieve sustained, steady and balanced development in the years ahead.
Both sides agreed to enhance various modes of connectivity such as land route and air services, between the two countries to promote proximity and linkages, facilitate bilateral engagement and collaboration as well as enhance other economic opportunities and benefits including by improving land transportation infrastructure between the two countries.
The Chinese side stated that it supports Nepal's identification of agriculture as its priority area, and is ready to strengthen exchanges and cooperation with the Nepalese side in germplasm resources exchange, personnel training and joint cultivation of fine breeds and improved varieties. In this context, the Chinese side stands ready to provide assistance, within its capacity, to Nepalese agricultural institutes in terms of faculty and capacity-building.
The two sides agreed to share experience and enhance cooperation in poverty alleviation. The Chinese side will help the Nepalese side to expedite the poverty reduction process in rural areas.

3. The two sides agreed to further expand people-to-people and cultural exchanges and cooperation with a view to promoting mutual understanding and friendship between the peoples of the two countries.
The two sides agreed to establish youth exchange programs on a sustainable basis, with the participation of youths from various walks of life. The number of participants will be gradually increased to 100 every year.
The Chinese side will continue to provide government scholarships to the Nepalese side. Students from Nepal are also welcome to study in China under various programmes and channels.
The two sides agreed to boost people-to-people contacts through the development of tourism and support the promotional measures of each in the other's country. The Chinese side agreed to actively encourage Chinese businesses to invest in and develop tourism infrastructure in Nepal.
The two sides agreed to promote contacts and exchanges between mass media, thinktanks, scholars and friendship groups of the two countries.
The two sides believed that the Tibet Autonomous Region of China and Nepal should give due recognition to their geographic proximity, establish more border trading points and strengthen exchanges among people in the border areas, in an effort to enhance traditional friendship and mutually beneficial cooperation.

4. The two sides believed that China and Nepal have identical or similar positions on major international issues such as global financial crisis, climate change, energy and food security as well as those relating to the aspirations and challenges of the developing countries. The two sides agreed to maintain close coordination and cooperation in this regard so as to uphold the common interests of both China and Nepal and other developing countries.
The two sides noted that the two countries always support and actively participate in UN peace-keeping operations. The two sides agreed to carry out exchanges and cooperation in this field.
The two sides view positively and support each other's participation in regional cooperation processes, and agree to strengthen coordination and cooperation in various regional cooperation mechanisms.

5. The Nepalese side reiterated that there is but one China in the world, and the Government of the People's Republic of China is the sole legal government representing the whole China. Both Taiwan and Tibet are integral parts of the Chinese territory. The Nepalese side firmly supports efforts made by the Chinese side to uphold state sovereignty, national unity and territorial integrity, and will not allow any forces to use its territory to engage in any anti-China or separatist activities.
The Chinese side spoke highly of the above position of the Nepalese side and expressed firm support to the efforts made by the Nepalese side to uphold its sovereignty, independence, territorial integrity, national unity and stability. The Chinese side is pleased to see the progress made in the peace process in Nepal, and sincerely hopes that Nepal will realize peace, stability and prosperity.

6. The two sides believed that the official visit of Prime Minister Nepal to the People's Republic of China symbolized an enhanced level of China-Nepal relations as well as a significant milestone in the history of cordial and cooperative relations between the two countries.
Prime Minister Nepal extended cordial invitation to President Hu Jintao, Premier Wen Jiabao and other Chinese leaders to pay official visits to Nepal at a mutually convenient time. The Chinese side expressed its appreciation and accepted the invitation with delight. The specific date of visits will be discussed through diplomatic channels.
On behalf of the government and people of Nepal, Prime Minister Nepal expressed his appreciation to the government and people of China for the warm and gracious hospitality accorded to him and his delegation.
The two sides signed the Agreement on Economic and Technical Cooperation between the Government of the People's Republic of China and the Government of the Federal Democratic Republic of Nepal and Memorandum of Understanding between the Government of the People's Republic of China and the Government of Nepal on Youth Exchanges during the visit.