Being located between China and India can be a driving force for Nepal's development, China's ambassador Yang Houlan said here.
Nepal should "make use of such a sound opportunity", the China Daily Monday quoted the envoy as saying after he completed a year in Kathmandu.
"I am highly optimistic about the future of Nepal, which is a land of great potential," the ambassador said Sunday.
According to him, Nepal's people, beautiful scenery, rich cultural and natural resources and unique geographical advantages were opportunities for the country despite prolonged political uncertainty.
More than 100 Nepalese took part in the celebration, the daily said.
Former Nepal prime minister Madhav Kumar Nepal urged his people to learn from its two huge neighbours to promote their economy.