China and Nepal hailed the "beginning of a new era" in relations Sunday as President Xi Jinping ended his visit with promises of a railway and tunnel connecting the two countries.

Xi -- in the first state visit by a Chinese leader in 23 years -- announced 3.5 billion RMB ($493 million) of aid between 2020-2022 "to uplift the living standard of Nepali people" during talks with President Bidhya Devi Bhandari, an official said.

China has been wooing Nepal, which rival India considers as within its sphere of influence, with pledges of development in the Himalayan nation sandwiched between the regional giants.

Kathmandu has also sought closer ties and much-needed energy and infrastructure investments from Beijing.

In a joint statement the two countries said Xi's visit "marked the beginning of a new era in Nepal-China relations and served as an important milestone in the history of friendly cooperation".

During the visit Nepali and Chinese officials signed at least 15 agreements, including a feasibility study for a cross-border railway project that would give Beijing access to the south through Nepal's open border with India.

"We will develop a multi-dimensional trans-Himalayan connectivity network and help Nepal to realise its dream to transform itself from a landlocked country to land-linked country," Xi said in his address during a banquet on Saturday evening.

They also undertook to carry out another feasibility study to construct a tunnel from China's Kerung to Kathmandu and to repair existing highways, as well as to strengthen hydropower, security, trade and education links.

Prime Minister K.P. Sharma Oli's foreign affairs adviser Rajan Bhattarai said Xi showed "China is ready to help Nepal with (an) open heart on its goal of development and prosperity, (helping with) infrastructure development and enhancing connectivity".

Nepali Times editor Kunda Dixit said the key test would be if China's deals help boost the impoverished nation's economy.

"The big test of whether or not Xi's visit will benefit Nepal is if these infrastructure projects will help Nepal become more self-reliant and use access to China to sell our goods, not increase our dependence," he told AFP.

China has intensified its presence in Nepal in recent years, pumping millions of dollars into projects ranging from roads to hydropower plants.

In 2017, Nepal signed up to China's Belt and Road initiative, a vast global infrastructure programme, which includes the building or upgrading of highways and airports in the country.

Nepal hopes for Chinese finance during Xi visit
Kathmandu (AFP) Oct 12, 2019 - Nepal rolled out the red carpet on Saturday for China's President Xi Jinping but rounded up Tibetans to prevent protests during the first state visit by a Chinese leader in 23 years.

Xi landed following two days of talks in neighboring India, and is expected to use his time in Kathmandu to push Beijing's controversial Belt and Road infrastructure projects.

Although India has traditionally been Nepal's main ally, China has intensified its presence in the impoverished Himalayan nation, pumping millions of dollars into projects ranging from roads to hydropower plants.

President Bidhya Devi Bhandari received him at Kathmandu airport to the sounds of the two countries' national anthems, played by an army band.

China's official Xinhua news agency early Sunday reported that, after arriving, Xi said he expected "to upgrade China-Nepal relations, enhance connectivity between the two countries and deliver more benefits" to their peoples.

In a signed article published in Nepali newspapers on Friday, Xi said he would use the two-day visit to "renew friendship and explore cooperation with my Nepali friends".

"It is important that we adopt a strategic and long-term perspective and draw up a blueprint for our bilateral relationship to take it to a new height in this new era," Xi added.

The International Campaign for Tibet (ICT), a Washington-based pressure group, said at least 18 people were arrested in the days ahead of Xi's arrival. These included two Nepali shopkeepers selling bags with Tibetan flags or slogans. Fourteen remained in detention on Saturday.

In 1959, Beijing sent soldiers to crush a revolt in Tibet against Chinese rule, leaving the Dalai Lama, Tibet's spiritual leader, fleeing to India where he remains.

Nepal is home to around 20,000 exiled Tibetans, but under pressure from Beijing the communist government has taken an increasingly hardline stance on their activities.

"There is heavy police presence. It is an intimidating situation. We've been asked to stay in," one Tibetan told AFP, speaking on condition of anonymity.

Nepalese authorities declined to comment.

-'Focus on connectivity'-

In 2017, Nepal signed up to China's Belt and Road initiative, a vast global infrastructure programme, which includes the building or upgrading of highways and airports in the country.

"A trans-Himalayan connectivity network is thus taking shape, which will serve not just our two countries but also the region as a whole," Xi said in his article.

Landlocked Nepal, sandwiched between India and China, is seeking closer ties and much-needed energy and infrastructure investment from Beijing.

Nepal's Foreign Minister Pradeep Gyawali said Xi's visit holds "historic significance" for Nepal.

"Our priority is to create opportunities for Nepal, joining it to China's development. We are focusing on connectivity between the two countries," he said.

Although no official announcement has been made, it is expected that the two countries will sign agreements for Chinese investment in highways, tunnels and hydro projects.

High on the agenda is the extension of China's Kerung railway from the border to Nepal's capital Kathmandu. There have been warnings over the financial commitments, however.

"Nepal has to be conscious when it reaches the point of financial dealings on these projects and build capacity to negotiate and not fall into debt traps," said Sudheer Sharma, editor of the Kantipur national daily.

Xi will hold talks with Prime Minister K.P. Sharma Oli and other top leaders and meet with President Bhandari.

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