Nepal and China have entered a new phase of bilateral cooperation with the signing of a framework agreement to promote Belt and Road cooperation in early December. The agreement, finalized during Nepali Prime Minister K.P. Sharma Oli's visit to China on Dec. 4, aims to enhance connectivity, infrastructure, trade, investment and tourism between the two nations. Ten priority projects, including a cross-border railway, are expected to boost the bilateral economic relationship.

The framework provides a structured basis for negotiations on implementing projects according to cooperation principles, objectives, priorities, projects and mechanisms. These principles include joint consultation for common development, pragmatic cooperation for meaningful effects, and a policy environment for increased investment.

This framework agreement embodies the core principles of the Belt and Road Initiative (BRI): fostering peace and cooperation, embracing openness and inclusivity, encouraging mutual learning, and promoting joint consultation and contribution for shared benefits. It emphasizes green, clean and environmentally sustainable economic development to enhance human well-being and ensure long-term sustainability. The agreement underscores mutual respect for sovereignty and shared interests, focusing on collaborative efforts to improve people's livelihoods through mutually beneficial cooperation.

Nepal and China have affirmed their commitment to equal sovereignty throughout all stages of cooperation, from policy formulation to project implementation and fund mobilization. This approach enhances comprehensive consultation and negotiation, enabling thorough feasibility studies and effective resource mobilization.

Nepal aims to upgrade its economic status from a least-developed country by 2026 and meet the UN 2030 Agenda for Sustainable Development. The framework considers the unique development stages of both countries, with a particular focus on addressing Nepal's specific development needs and priorities. It positions Nepal to benefit from China's investment capacity, technological expertise and infrastructure development experience.

Success depends on implementing commercially viable projects under the framework. The agreement emphasizes identifying cooperation opportunities, fostering innovation and conducting thorough feasibility studies for all proposed initiatives. This ensures projects serve both countries' long-term interests while maximizing investment value under the BRI.

The framework emphasizes the importance of adhering to market-oriented rules and regulations, as well as applicable international standards, while respecting both nations' laws. Nepal and China aim to enhance their legal and regulatory systems to create a business environment that attracts high-quality foreign investment and facilitates technology transfer.

Since establishing diplomatic relations in 1955, Nepal and China have maintained a consistently sound, friendly and cordial relationship. Several milestones mark this positive trajectory: Nepal and China signed a BRI memorandum in Kathmandu in 2017, agreed to develop transport infrastructure under the Trans-Himalayan Multidimensional Connectivity Network in 2018, and elevated their relationship to a strategic partnership of cooperation featuring ever-lasting friendship for development and prosperity in 2019.

The recent BRI cooperation framework represents another significant step in deepening the Nepal-China partnership.

The author is deputy executive editor of The Rising Nepal, an English daily newspaper in Nepal.

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