China approves $181 million aid to Nepal, agrees on providing chemical fertiliser and reopening key ports

Kathmandu: China has announced 800 million yuan ($181 million) of aid to Nepal for this year. Chinese Foreign Minister Wang Yi announced it after a meeting with his Nepal counterpart Narayan Khadka in Qingdao on Wednesday. Khadka is on a three-day visit to China at the invitation of Wang, who is also the State Councillor. The trip comes amid growing tensions between China and Taiwan following US House Speaker Nancy Pelosi`s visit to the self-governing island last week. China also conducted its largest-ever exercises in the area in retaliation to her visit.

During the meeting, Khadka reiterated Nepal`s unwavering commitment to the `One China Policy and assured that the Nepali territory will not be allowed to be used for any activity against Beijing.

In his address, Wang reiterated China`s continued and unconditional support for Nepal`s sovereignty, independence and territorial integrity and assured support in the country`s development endeavours as per the priority of the government in Kathmandu, according to a statement issued by the Foreign Ministry here. Besides providing a new batch of economic assistance to Nepal, both sides also reached several other agreements and understandings, the Ministry added.

As Nepal is witnessing a crippling shortage of chemical fertiliser, China has agreed to provide it.

Upon Nepal`s request, China has assured that it will positively consider providing chemical fertiliser and study the feasibility of establishing a chemical fertiliser plant in Nepal, said the Ministry. "The State Councillor agreed to assist Nepal`s agricultural sector. He also agreed to encourage Chinese investment in developing the manufacturing capacity of Nepal and enhance cooperation in the export of Nepali tea and traditional medicinal herbs," the statement said, adding that Khadka and Wang decided to establish a joint mechanism for Covid-19 control in border ports.

They also agreed to open Rasuwa-Kyerung and Tatopani-Jangmu ports for two-way trade which was hit by the pandemic. The ports are the major trading zones between Nepal and China.

The two sides also agreed to utilise the Hilsa-Pulang port for one-way trade which will take place as soon as the fresh wave of the Covid-19 pandemic in Tibet is controlled. "In support of people being affected by disasters and natural calamities in different parts of Nepal, Wang announced to provide Nepal with 3 million yuan worth of disaster relief materials as per Nepal`s request. China will also provide Nepal with an additional 2 million yuan worth of medical items and logistics," the Ministry statement said

The State Councillor also announced that China will provide additional Covid-19 vaccines and pandemic-related medical assistance as much as Nepal may require. Wang announced that China would provide support to the establishment of Chimeric Antigen Receptor T cells (CAR T cells) manufacturing laboratory in Civil Service Hospital to treat blood cancer and provide necessary training to Nepali health professionals. The Civil Hospital was built with Chinese assistance.

Wang further said that all the remaining Nepali students who wish to return to China can proceed with visa procedures by following all Covid-19 SOPs to resume their studies. Both sides agreed to form a bilateral technical committee to do the necessary preparation for the functioning of the existing mechanism of the Nepal-China Joint Boundary Inspection Committee. The two countries have some issues over boundary disputes in some places.

(With IANS inputs)