On May 12, 2017, Nepal and China took a significant step in enhancing their bilateral relationship by signing a Memorandum of Understanding (MoU) under the Belt and Road Initiative (BRI). This landmark agreement marked Nepal’s formal entry into the BRI, a global development strategy initiated by China to enhance economic connectivity and cooperation across Asia, Europe, and beyond. The MoU between Nepal and China focuses on several critical areas such as infrastructure development, investment in transport networks, energy cooperation, and the establishment of industrial parks.

One of the primary objectives of this agreement is to develop the Trans-Himalayan Multi-Dimensional Connectivity Network, which includes key projects like cross-border railways, highways, and transmission lines. By joining the BRI, Nepal aims to attract Chinese investments that will aid in modernizing its infrastructure, thereby boosting trade, tourism, and economic growth. The initiative also aligns with Nepal’s aspirations for sustainable development and regional connectivity, promoting economic resilience and reducing poverty. This strategic partnership underscores a shared vision for regional prosperity and exemplifies the collaborative efforts needed to address global development challenges.