Political relations: Friendly exchanges between China and Nepal date back to more than thousand years. Eminent monks Fahien of the Jin Dynasty and Xuen Tsang of the Tang Dynasty of China had been to Lumbini (in the south of Nepal), birthplace of Sakyamani. In the Tang Dynasty, princess Khri-btsun of Nepal was married to master Songtsan Gambo of Tibetan in ancient China. In the Yuan Dynasty, a famous Nepalese craftsman Arniko came to China to supervise the building of the White Pagoda Temple in Beijing.

Economic cooperation: As a friendly neighbor, Nepal is one of the first countries receiving China's aids. China has provided 62 sums of free economic aid to the government of Nepal since 1956, totaling 1,2415 million RMB. The Chinese side undertook 27 whole plants with such economic aids, 25 of which have been completed, including roads, brick and tile factory, paper mill, hydroelectric station, textile mill, tannery, project for irrigation, sugar refinery and international conference hall. Meanwhile, China provided 15 batches of goods and materials aid , consisting of grain, table salt, trucks and trolleys. China's contract projects and labor cooperation in Nepal started in 1981. Up to 1999, the contracts signed with Nepal have reached 373, amounting to US$ 645 million.

Culture exchange: There are 15 exchanges of visits in the fields of arts, literature, sport, science, broadcasting, religion, photography, publishing, education every year. Each year China provides certain number of scholarships to Nepal. China's annual quota for scholarship to Nepal is 100. There are presently 109 Nepalese students studying in China. In August 2000, Nepal became the 16th country while Chinese citizen may proceed as tourists at their own expenses.

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