Diplomatic recognition in international law is a unilateral political act, with domestic and international legal consequences, whereby a state acknowledges an act or status of another state or government. Recognition can be accorded either de facto or de jure, usually by a statement of the recognizing government. (http://en.wikipedia.org/wiki/Diplomatic_recognition)
Therefore, a unilateral talk like this does not create a binding effect. A Political Statement could mean recognition of the parallel government and the ethnographic federal division of Nepal, while the government is being recognized by China with PM Nepal‘s Maiden Visit. Frequent diplomatic and high profile visits to the neighboring states suggests a power struggle between the Seven Party Alliance (SPA) Government led by UML; Unified Maoists, a member of SPA-Maoist Alliance and the dethroned Monarchy.
Is plebiscite (referendum), recognized by the international community, the peaceful middle path.