The bilateral relation between Nepal and China has been friendly and is defined by the ‘Sino-Nepal Treaty of Peace and Friendship’ signed on April 28, 1960 by the two countrie. The government of Nepal, though initially unenthusiastic about its ties with People’s Republic of China, has been of late making efforts to increase trade and connectivity with China while also simultaneously trying to decrease its reliance on India. Relations between Nepal and China got a boost when both countries solved all border disputes along China–Nepal border by signing the Sino-Nepal boundary agreement on March 21, 19.
The government of both Nepal and China ratified the border agreement treaty on October 5, 1961[3]. From 1975 onward, Nepal has maintained a policy of balancing the competing influence of China and Nepal’s southern neighbour India, the only two neighbors of the Himalayan country after the annexation of the Kingdom of Sikkim by India in 1975.Since 1975, Sino-Nepal relations have been close and grown significantly with China being the largest source of FDI while India still remains one of the major source of remittance to Nepal. As per the estimate of Nepalese government, there are around 2-3 million Nepalese migrant workers in India while the number of Nepalis in China is minuscule (3,500 in Mainland and 15,950 in Hong Kong) as of 2017.