KATHMANDU: Prime Minister Madhav Kumar Nepal today said no anti-China activity would be allowed to take place in the Nepali territory.

Inaugurating China Festival 2009 in the capital, the PM said, "We believe in the principles of the panchsheel, which advocates the policy of non-alignment."

"We appeal to China to invest in water resources, herb processing and the tourism sector in Nepal," he said, appreciating the age-old relation between the two countries and the Chinese cooperation in the development of Nepal. Laying importance in the rail link between Nepal and Lhasa, the PM said, "We want to strengthen partnership with China in the development sector."

Chinese ambassador to Nepal Qui Guohong said the relation between the two countries had been cordial and would be further strengthened in the days to come.

Lee Guohong, deputy director general of the Chinese ministry of culture, said the festival would help promote the Chinese culture in Nepal.

The festival will be over on October 16.