In return, China also praised Nepal for the crackdown on Tibetan refugees backing the India-based Dalai Lama and using its territory.
The two countries will lift their relations to a new level during Yadav's upcoming visit to China, Foreign Ministers of the two countries said here after holding talks.
Ahead of Yadav's visit to take part in China Boao Forum for Asia, Chinese Foreign Minister Wang Yi and his Nepalese counterpart Mahendra Bahadur Pande held talks in the backdrop of Beijing stepping up its annual assistance to Nepal to USD 128 million from previous USD 25 million.
He said Nepal welcomes and is ready to participate in the "Belt and Road" projects advocated by China, referring to the Silk Road and Maritime Silk Road projects.
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Nepal has became a founding member of the Asian Infrastructure Investment Bank and participated in the Silk Road Economic Belt project, state-run Xinhua news agency reported.
Appreciating Nepal's crackdown down against Tibetan refugees backing the Dalai Lama - who Beijing sees as a "separatist", Wang said China appreciates that Nepal firmly upholds the one-China policy and that it never allows any forces to use its territories to carry out separatist activities against it.
Pande said the Nepali government puts great importance on its relations with China and firmly adheres to the one-China policy.
He said Nepal will never allow any forces to use its territories to carry out any activities against its friendly neighbour China.