China will provide $1 million to Nepal for the May 14 local elections, President Xi Jinping announced on Monday as he discussed ways to step up ties with Prime Minister Prachanda, who is here on a fence-mending visit.
President Xi committed to provide the 9 million yuan at a meeting with Prachanda, who is visiting China for high-level talks, Nepal's official Rastriya Samachar Samiti reported from Beijing.
During the meeting held at the Great Hall of the People, Prachanda urged Beijing to reopen the Tatopani border point, the only major trade route with China which was closed after the April 2015 earthquake that rattled the Himalayan nation.
Xi assured Prachanda that China was serious about opening the Tatopani and other border points, the report said.
The leaders also discussed the construction of a railway line in Nepal with Chinese investment during the meeting that lasted for 35 minutes.
Xi said friendly ties between China and Nepal were in the fundamental interest of the two countries and the two peoples.
"We've steadily pushed forward connectivity, post-disaster reconstruction as well as advancing infrastructure and people-to-people exchanges. I'm glad to see this progress. We should work together to create new momentum in friendly cooperation," Xi was quoted as saying by China's official CGTN network.
Recalling his meeting with Prachanda in Goa on the sidelines of the BRICS Summit last year, Xi said he was pleased that both the countries had moved forward with plans made there.
The two countries should particularly make the most of the opportunities presented by the infrastructure building under the ambitious Belt and Road (Silk Road) Initiative, Xi said.
Ahead of Prachanda's visit state-run Chinese media had vented its ire against him saying Beijing-Nepal ties have fallen to a "low ebb" with most of the Chinese projects stuck due to his "pro-India" policies.
"For quite some time, Pushpa Kamal Dahal, better known as Prachanda, prime minister of Nepal and chairman of the Communist Party of Nepal (Maoist-Centre), had been friendly towards China," an article in the state-run Global Times had said pointing to his past association with Beijing and his anti-India rhetoric.
"However, since assuming office for the second time as prime minister in August last year he has visited India twice and warmly welcomed Indian President Shri Pranab Mukherjee in Kathmandu last November," it had said.
Prachanda said Nepal has appreciated China's support in reconstruction since the earthquake in 2015, adding that his country will continue to stick to the 'One China' policy on Tibet and Taiwan.
He said Nepal supports the Belt and Road Initiative and will pursue cooperation with China in trade and investment, transportation, tourism and aviation.
Prachanda said his meeting with Xi was fruitful, and added that this kind of high-level discussion has added a new dimension to Nepal-China ties, according to a statement published on the Nepalese premier's website.
He described the meeting as "exciting, open and clear" and said the Chinese president was positive to all the issues discussed by him.
"Apart from the positive response, the Chinese president talked about Nepal's political stability, development, prosperity, infrastructure development, railway and resumption of Tatopani border crossings," Prachanda said after the meeting.
Issues of Nepal-China bilateral relations and other mutual interests figured in the meeting. Xi expressed his happiness over the announcement of date for local election in Nepal and pledged to extend an assistance of RMB 9 million for the same.
The May 14 local elections is being opposed by Madhesis, who say the polls should be conducted only after their demands regarding the re-demarcation of provincial boundaries and other issues are addressed by an amendment to the new Constitution.
Prachanda, who succeeded the pro-China K P Sharma Oli as Nepal's premier, is on a five-day visit to China since March 23. He attended the China-led Boao Forum for Asia.
For China, the fall of the Oli government was a big disappointment and a setback to its planned push into Nepal through Tibet with rail and highway linkages to expand its influence in the landlocked country dependent on India for most of its supplies.
During his visit here in August, Oli had signed a transit treaty with China to reduce dependence on India and sought a rail link through Tibet.