China on Friday announced to increase its annual assistance to Nepal by over 400% from 150 million Yuan to 800 million Yuan.
The decision was taken at a meeting between Chinese foreign minister Wang Yi and his Nepali counterpart Mahendra Bahadur Pandey.
China assured that it will continue to support Nepal in trade, investment, infrastructure, agriculture, tourism,science and technology, power and security.
"We are willing to support Nepal in whatever way we can, so that it can elevate itself from a less developed nation to a developing nation by 2022" Wang told reporters after the meeting.
The Chinese move follows India providing a line of credit worth 1 billion USD to Nepal during Narendra Modi's first visit as Prime Minister to Kathmandu in August.
Replying to a query Wang said that relationship between China and India has improved in recent years and expressed confidence that it will reach new heights in future.
He asked Nepal to take advantage of rapid development in China and India and said it can act as a bridge between the two big nations.
Earlier Wang handed over medical equipment worth 200 million Nepalese Rupees to a hospital which was constructed with Chinese assistance.
This is the first visit by a Chinese foreign minister to Nepal since 2008. Both countries are celebrating 60th anniversary of establishment of diplomatic ties in 2015.