On December 3, 2008, Nepali Prime Minister Prachanda met in Kathmandu with Chinese Foreign Minister Yang Jiechi.

During the meeting, Prachanda said China is a close friendly neighbor and an important cooperative partner of Nepal. He expressed his sincere thanks to the government of China for providing support and assistance to promote national stability and economic and social development in Nepal over the years. Prachanda said his country hopes to maintain high-level exchanges with China and enhance exchanges and cooperation in all areas to lift bilateral ties to a higher level. He also stressed Nepal's respect and support for China's efforts in protecting its sovereignty, security and territorial integrity. He added that Nepal has always been upholding the "one-China policy" and will never allow anyone or any force to engage in anti-China separatist activities on the soil of Nepal.

Yang Jiechi said China and Nepal are good neighbors, friends and partners linked by mountains and rivers. The two countries are always respecting, trusting and supporting each other and treating each other as equals. He lauded the support provided by the Nepali side in making the Beijing Olympics successful, as well as on the issues concerning Taiwan and Tibet. The Chinese government firmly adheres to the Five Principles of Peaceful Coexistence and respects the social system and development path chosen independently by Nepal. The Chinese foreign minister made it clear that China firmly supports Nepal’s efforts to achieve national peace, political stability and economic development.

Yang emphasized that it is a set policy of the Chinese government to develop China-Nepal good-neighborly and friendly relations. China is ready to join hands with the Nepali side to push forward bilateral ties, which he said is in the fundamental interest of the two peoples and is also conducive to this region’s peace and stability.

On the same day, Yang also held talks with Nepali Foreign Minister Upendra Yadav. Both sides exchanged views on implementing the important consensus reached by the leaders of the two countries on furthering China-Nepal ties and reached agreement in the following five aspects.

First, maintain high-level exchanges. China welcomes Prime Minister Prachanda to visit China next year. Both sides should enhance counterpart exchanges between the government agencies, parliaments, political parties and local governments as well as consultations between foreign affairs departments.

Second, deepen trade cooperation. China is ready to offer assistance within its ability to Nepal in improving its people’s livelihood, well implement Nepal’s infrastructure construction projects and encourage competent businesses to invest in Nepal. China is ready to take active measures to increase imports from Nepal and promote a balanced development of bilateral trade.

Third, expand cooperation on education, tourism and civil aviation. Both sides should expand humanities exchanges through human resources training, the “China Festival” in Nepal and the exchange of visits of youth delegations.

Fourth, promote normal personnel exchanges between China's Tibetan autonomous region and Nepal and improve infrastructure construction in border ports to stimulate border trade.

Fifth, keep closer communication and coordination on major international and regional issues and remain committed to maintaining regional peace and stability.

Following the talks, the two foreign ministers signed an agreement on economic and technological cooperation between the two countries. Yang also attended a reception held by friendship groups in Nepal and the launching ceremony of China-aided Syafrubensi-Rasuwagadhi project.