China offered tariff reductions, training of agricultural experts and other assistance in the statement issued during Nepalese Prime Minister Madhav Kumar Nepal´s first visit to China since he took office in May.
The two states also agreed to improve land and aviation links, and to exchange expertise in poverty relief.
"The Chinese side will provide necessary support and assistance to the Nepalese side in hydropower construction, infrastructure development, health, education, human resources development and other fields," it said.
The two states expressed satisfaction with the implementation of Chinese assistance projects for Nepal´s socio-economic development.
"The continued and enhanced level of Chinese cooperation extended in the current transitional phase would be of additional significance to the people of Nepal," the Nepalese side said in the statement.
China and Nepal, which established diplomatic ties in 1955, decided to lift bilateral relations to a Comprehensive Partnership of Cooperation featuring ever-lasting friendship.
The two states also pledged to promote trade, investment and economic cooperation, especially in information technology, transport, agriculture, infrastructure construction and poverty relief.
Nepal welcomed Chinese companies participating in hydropower projects and infrastructure development, and voiced willingness to establish special economic zones to attract Chinese investment.
The two countries also agreed to build more border trading points between Nepal and neighboring Tibet Autonomous Region of China in a bid to further traditional friendship and mutually beneficial cooperation.
Nepal reiterated that both Taiwan and Tibet were inalienable parts of the Chinese territory and pledged it "will not allow any forces to use its territory to engage in any anti-China or separatist activities."
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