China agreed on Monday to consider building a railway into Nepal and to start a feasibility study for a free trade agreement with the impoverished, landlocked country, which has been trying to lessen its dependence on its big neighbor to the south, India.

The Himalayan nation, that serves as a natural buffer between China and India, adopted its first post-monarchy constitution in September hoping this would usher in peace and stability after years of conflict.

But protesters blocked trucks coming in from India, leading to acute shortages of fuel and medicine. Nepal blamed New Delhi for siding with the protesters, a charge India denied.