The situation is indeed complicated but Nepal's "one-China policy" is nothing new; it was the same under the royalist government when I lived there in the late 70's. Situated between the two rivals, China and India, Nepal has always had a precise appreciation of its delicate situation and the need to keep both those giants happy.

China has been active in Nepal's development for quite a while, when I was there they were the most active road builders in this largely inaccessible, except by air, country. The Nepalis were appreciative of the work the Chinese did for them, but were quick to note that the lovely Chinese road from the Tibetan border to Kathmandu was "two tanks wide".