Kathmandu, Aug 11 : China has announced to provide an 800 million yuan ($181 million) aid to Nepal for this year. The announcement was made by Chinese Foreign Minister Wang Yi during his meeting with his Nepal counterpar Narayan Khadka in Qingdao on Wednesday. Khadka is on a three-day visit to China at the invitation of Wang, who is also the State Councillor. The trip comes at a time during simmering tensions between China and Taiwan following US House Speaker Nancy Pelosi's visit to the self-governing island last week. During the meeting, Khadka reiterated Nepal's unwavering commitment to 'One China Policy' and assured that the Nepali territory will not be allowed to be used for any activity against Beijing. In his address, Wang reiterated China's continued and unconditional support to Nepal's sovereignty, independence and territorial integrity and assured to support in the country's development endeavours as per the priority of the government in Kathmandu, according to a statement issued by the Foreign Ministry here. Besides providing a new batch of economic assistance to Nepal, both sides also reached several other agreements and understanding, the Ministry added. As Nepal is witnessing a crippling shortage of chemical fertiliser, China has agreed to provide it. Upon Nepal's request, China has assured that it will positively consider providing chemical fertiliser and to study the feasibility of establishing a chemical fertiliser plant in Nepal, said the Ministry. "The State Councillor agreed to assist Nepal's agricultural sector. He also agreed to encourage Chinese investment in developing manufacturing capacity of Nepal and enhance cooperation in the export of Nepali tea and traditional medicinal herbs," the statement said, adding that Khadka and Wang decided to establish a joint mechanism for Covid-19 control in border ports. They also agreed to open Rasuwa-Kyerung and Tatopani-Jangmu ports for two-way trade which was hit by the pandemic. The ports are the major trading zones between Nepal and China. The two sides also agreed to utilise the Hilsa-Pulang port for one way trade which will take place as soon as the fresh wave of Covid-19 pandemic in Tibet is controlled. "In support of people being affected by disasters and natural calamities in different parts of Nepal, Wang announced to provide Nepal with 3 million yuan worth of disaster relief materials as per Nepal's request. China will also provide Nepal with additional 2 million yuan worth of medical items and logistics," the Ministry statement said. The State Councillor also announced that China will provide additional Covid-19 vaccines and pandemic related medical assistance as much as Nepal may require Wang announced that China would provide support to the establishment of Chimeric Antigen Receptor T cells (CAR T cells) manufacturing laboratory in Civil Service Hospital to treat blood cancer and provide necessary training to Nepali health professionals. The Civil Hospital was built by Chinese assistance. Wng further said that all the remaining Nepali students who wish to return to China can proceed for visa procedures, while fulfilling the health protocols, to resume their studies. Both sides agreed to form a bilateral technical committee to do necessary preparation towards the functioning of existing mechanism of Nepal-China Joint Boundary Inspection Committee. Nepal and China have some issues over boundary dispute in some places. /IANS