Nepal and China have officially signed the BRI Cooperation Framework during Prime Minister KP Sharma Oli’s visit to China. This development formally further advances Nepal’s involvement in the Belt and Road Initiative (BRI), a programme China proposed and Nepal initially signed in 2017.

The signing was delayed on Tuesday due to disagreements over terminology to be used in the draft. The debate centred on whether to include the term “grant” in the financial cooperation modality. Following further discussions, a consensus was reached on Wednesday, with both sides agreeing to use the term “aid assistance financing.”

A senior Nepali official involved in the talks said that discussions have finally concluded leading to an agreement on the framework. Initially, the Nepali side proposed ‘grant financing cooperation modality,’ which was amended by the Chinese to ‘assistant financing modality.’ Eventually, the term ‘aid assistance financing’ was agreed upon by both parties.”

On Nepal’s side, the negotiations were led by Prime Minister Oli’s economic and development advisor Yubaraj Khatiwada and Foreign Minister Arzu Rana Deuba. High-ranking officials from China’s Ministry of Foreign Affairs represented the Chinese delegation.

This agreement marks a significant step in Nepal-China relations, paving the way for enhanced economic cooperation under the framework of the BRI, a major programme introduced by Chinese President Xi Jinping.