President Xi Jinping has hinted on China's desire to raise the diplomatic status of Nepal and treat it as a bridge between China and India, the Times of India reported.
The report said that during discussions for a cross-border railway line between China and Nepal, Xi told the visiting Nepali Prime Minister K. P. Sharma Oli that "Nepal can be a bridge between China and India."
Xi also made suggestions on giving Nepal observer status at the Shanghai Cooperation Organization, a union composed of several countries that include China, Russia and Central Asian republics. Now due to enter as full members, India and Pakistan had long been under observer status in the SCO.
The Chinese president also called on China and Nepal to expand cooperation by using platforms like the Asian Infrastructure Investment Bank and the Shanghai Cooperation Organization, the Xinhua News Agency reported.
While expressing hope that Nepal should be included in China's Silk Road initiative, Xi also said that "as developing countries, China and Nepal are facing the historic missions of reform and development."
Observers said that Nepal's acceptance would put pressure on India, which has been selective about China's program, approving only the projects that it wants instead of accepting whatever is offered.
The report said that Xi expressed desire to enhance cooperation on post-earthquake reconstruction, energy, connectivity and industrial capacity, as well as speed up the establishment of a China-Nepal free trade zone.
Meanwhile, Oli expressed Nepal's firm commitment to the One China policy, as visiting foreign dignitaries are sworn by Chinese officials to adhere to the said policy in which Taiwan is assumed as part of mainland China.
Oli said that Nepal will be an active participant in China's Belt and Road plan, also called as the Silk Road program, adding that Kathmandu is anticipating closer cooperation with China on connectivity, infrastructure, trade, finance and tourism, as well as international affairs.