Due to the construction of a tunnel in the Nyalam and Khasa regions of Tibet in China as part of the Chinese smart city project, goods containers to Nepal were restricted from entering the Khasa border trade point with Nepal from August 30.

The trade points north of Bagmati Province were opened giving sense of relief to traders in Nepal. As Nepal’s biggest festival Dashain is scheduled for next month, the restriction in these trade points stressed Nepali businesses whose consignments were in cargos to Kathmandu. Nepal’s trade deficit with China remained negative at Rs296.18 billion.

Since March, 14 trans-Himalayan trade points have reopened after four years which were closed during COVID-19 times, but there is no cross-border trade taking place from these points. Rasuwagadhi-Kerung and Tatopani-Zhangmu/Khasa are two international trade routes connecting Nepal and China. Tatopani-Khasa, has historically been the main land route for trade with China.

The Rasuwagadhi-Kerung customs point, was being used as an alternative route after the closure of the Tatopani-Khasa point in 2015.

By Sweta Singh (Kathmandu)