China-Nepal ties entered a new phase with the two nations having decided to establish a comprehensive partnership of cooperation, said Chinese President Hu Jintao in Beijing on Wednesday.

Chinese President Hu Jintao (R, front) meets with visiting Nepali Prime Minister Madhav Kumar Nepal (L, front) in Beijing, Dec. 30, 2009. [Rao Aimin/Xinhua]

"We will work with Nepal to make concerted efforts for the in-depth development of our relationship," Hu said in a meeting with Nepalese Prime Minister Madhav Kumar Nepal.

China and its southwestern neighbor Nepal on Tuesday agreed to lift their bilateral relationship to a higher level by establishing a comprehensive partnership of cooperation.

The decision came when Chinese Premier Wen Jiabao held talks with Nepal, who was here on his first official visit to China since he took office in May.

The newly-established comprehensive partnership of cooperation signals closer ties between China and Nepal, which have enjoyed a good-neighborly partnership in the past.

President Hu told Nepal that the two nations should consolidate their political basis for the bilateral ties, increase high level visits, and continue supporting each other in major issues.

Hu proposed the two neighbors promote cooperation in the areas of economy, infrastructure construction, agriculture, human resources, tourism and border trade, and strengthen people-to-people exchanges.

He also hoped the two sides would enhance coordination in international and regional affairs and jointly cope with global challenges such as climate change, energy and food security.

"We should work together to safeguard regional and world peace and development," Hu said.

China's top legislator Wu Bangguo also met with Nepal earlier on Wednesday.

"The decision to establish a China-Nepal comprehensive partnership of cooperation is a strategic one," said Wu, chairman of the Standing Committee of the National People's Congress (NPC).

According to a joint statement issued Wednesday, the two sides decided to establish and develop a Comprehensive Partnership of Cooperation featuring close friendship on the basis of the five principles of peaceful coexistence.

Wu said this accords with the realistic and long-term need of the development of China-Nepal ties, and is also a common aspiration of the two peoples.

China and Nepal established diplomatic ties in 1955. "We will work with Nepal to constantly enrich the content of our bilateral relationship and carry forward our traditional friendship," Wu noted.

Wu also said the NPC would increase friendly exchanges and cooperation with the Constituent Assembly of Nepal to contribute to the comprehensive growth of China-Nepal ties.

During his meeting with Hu and Wu, Nepal spoke highly of China's remarkable economic and social progress.

China's prosperity and stability is in line with the interests of Nepal and the world at large, he noted.

Hailing the profound friendship between the two peoples, Nepal said his country is ready to work with China to expand cooperation in various sectors and increase coordination in global issues.

Nepal also pledged to increase exchanges between the two governments, parliaments and political parties, in a bid to push forward Nepal-China relations.

Nepal reiterated that his country understand China's core interests and would unswervingly adhere to the one-China policy.

The Nepalese side firmly supports China's effort to uphold state sovereignty, national unity and territorial integrity and believes Tibet is an inalienable part of the Chinese territory, the prime minister said, adding that Nepal would not allow any force to use Nepal's territory to engage in any anti-China or separatist activities.

Nepal left Beijing for China's financial hub Shanghai on Wednesday afternoon, the last leg of his visit. He previously visited Lhasa, capital of southwest China's Tibet Autonomous Region, and Xi'an.