BEIJING, Aug 28 (AP) -- China's new railway to Tibet will be extended to neighboring Nepal to expand trade with South Asia, a state news agency on Monday quoted the chairman of Tibet's government as saying.

Qiangba Puncog made the comment Sunday to visiting Nepalese Deputy Prime Minister K.P. Sharma Oli in the Tibetan capital, Lhasa, the Xinhua News Agency said.

It didn't say when construction of the additional link might begin.

The Tibet railway opened for passenger travel on July 1, connecting the western Chinese city of Golmud to Lhasa.

"China's newly-built railway to Tibet will be extended to the border between China and Nepal," Xinhua said, citing Qiangba Puncog. "Tibet is a remote place that is looking forward to being connected to South Asia. The railway extension will promote business exchanges."

State media earlier reported that the railway would be extended from Lhasa to Tibet's second-largest city, Xigaze, which is closer to the Nepalese border.

China has five border crossings with Nepal, but only one has a highway, according to Xinhua.