For the first time since the formation of the new government led by the Rastriya Swatantra Party (RSP), Nepal and China have held bilateral talks at the foreign minister level.

The talks come at a time when Beijing remains skeptical about its security and strategic interests in Nepal, particularly following last year’s GenZ movement. Nepal’s Foreign Minister, Shisir Khanal, held bilateral talks with his Chinese counterpart, Wang Yi, in Beijing, focusing heavily on China’s core concerns alongside a wide range of other issues.

Khanal’s dialogue with the Chinese foreign minister follows his recent visit to India and a series of high-level visits from the United States to Nepal. A primary reason behind Beijing's invitation to Khanal was to secure firm assurances from the new government regarding China's core security and strategic anxieties.

According to The China Daily, Khanal reiterated Nepal's long-standing diplomatic positions during the meetings:

"Issues related to the Taiwan question and Xizang (Tibet) are China's internal affairs," Khanal stated, adding that Nepal firmly adheres to the One-China policy, supports China's complete reunification, and will never allow any force to use Nepali territory to undermine China's interests.

Meanwhile, The Kathmandu Post reported that the Chinese side expressed explicit concerns to Khanal regarding certain US initiatives, including the Millennium Challenge Corporation (MCC) and the State Partnership Program (SPP). 

With the formation of the new RSP-led government, Beijing is closely monitoring the evolving relationship between Nepal and Western countries. Chinese foreign policy observers note that Beijing remains highly sensitive to Western strategic projects and potential security cooperation in the region—agendas that consistently dominate the table whenever Kathmandu and Beijing sit down for bilateral talks.

During the meetings, the Chinese side sought a more conducive and fair business environment for Chinese investors in Nepal. For a long time, Beijing has complained that Chinese companies face persistent regulatory roadblocks and bureaucratic hurdles in the country.

The implementation of past pacts was another dominant theme. In Chinese diplomacy, whenever President Xi Jinping visits a country and signs an agreement, its execution stands as a top priority. Just as in previous engagements, Beijing placed heavy emphasis on executing the wide-ranging agreements signed during President Xi’s historic 2019 visit to Nepal, which originally elevated bilateral ties into a comprehensive strategic partnership.

Regarding the Belt and Road Initiative (BRI), while the two sides discussed the matter, no tangible breakthroughs or specific outcomes were highlighted in their official press releases.

 Last year, the two countries signed a framework agreement on the BRI, identifying 10 priority projects, but detailed discussions on these projects appeared limited during this visit. 

The Rastriya Swatantra Party and its government have largely maintained a quiet stance on their official position regarding the initiative. Previously, Nepal's traditional political parties had communicated to Beijing that the country strongly prefers grants over loans when finalizing investment modalities.

Beyond these strategic hurdles, the two sides engaged in an expansive dialogue aimed at practical, long-term economic cooperation. Currently, Nepal and China are actively cooperating in several core sectors:

·       Infrastructure and connectivity

·       Border management and energy

·       Trade and investment

·       Agriculture and technology transfer

·       Digitalization and tourism

Furthermore, China has proposed expanding this cooperation into new frontiers, including chemical fertilizer supply, petroleum and natural gas exploration, and artificial intelligence—areas in which both sides have now intensively engaged.

While in Beijing, Khanal also met with Liu Haixing, Minister of the International Department of the Central Committee of the Communist Party of China (CPC), to discuss party-to-party cooperation.

According to the Chinese readout, the CPC expressed a strong willingness to consolidate ties with the RSP, deepen strategic communication, enhance political mutual trust, and share governance experiences. The readout noted that China aims to utilize its "Party+" channel to promote cross-field cooperation and contribute political party strength to the broader China-Nepal relationship. In response, Khanal stated that the RSP is eager to learn from China's extensive experience in the party-building and governance processes.