Nepal and China have agreed to strengthen trade, commerce, and transit cooperation while exploring ways to facilitate the export of Nepali agro products to China.

During a meeting on Monday at the Consulate General of Nepal in Lhasa, Director General of the Commerce Department of Xinjiang Autonomous Region, Chen Jung, and Nepal's Consul General in Lhasa, Laxmi Prasad Niraula, discussed key issues related to bilateral trade, business ties, and upcoming trade fairs.

Consul General Niraula expressed gratitude for China’s continued support to Nepal and stressed the need for further cooperation. In response, Director General Chen commended the Consulate General’s role in strengthening bilateral relations and reaffirmed China's commitment to supporting Nepal’s development.

Both sides agreed to take initiatives to address challenges at border checkpoints, improve physical infrastructure, promote participation in trade fairs, and enhance coordination for mutual benefit, according to the Consulate General of Nepal.

China is Nepal’s second-largest trading partner after India in terms of foreign trade volume. In the last fiscal year (FY 2023/24), Nepal exported goods worth Rs 2.59 billion to China, while imports from China totaled Rs 298.77 billion, according to the Trade and Export Promotion Center.

In the first seven months of the current fiscal year, Nepal’s total foreign trade stood at Rs 1,115.79 billion, while trade with China amounted to Rs 194.45 billion, According to the Department of Customs, this included Rs 192.45 billion in imports and Rs 2 billion in exports, resulting in a trade deficit of Rs 190.44 billion.

Bilateral trade has remained limited since China imposed restrictions following the Covid-19 pandemic. However, efforts are underway to restore trade to pre-pandemic levels. (With inputs from RSS)