Nepal-China border points have never been fully functional since the 2015 earthquakes. After the quakes severely damaged the road and other infrastructure at Tatopani, the busiest border point between the two countries, it took four years for it to reopen, but even then only partially.  The Rasuwagadi-Kerung border came into operation in 2014 but due to lack of infrastructure and other reasons, it failed to serve as an alternative to Tatopani crossing, as China had planned.   Then Covid-19 pandemic struck in 2019. What little movement of goods that was taking place following the disastrous 2015 earthquakes came to a grinding halt. 

Officials suspect China closed the Tatopani border mainly out of security concerns and the earthquake was just a pretext. Soon after the disaster struck Nepal, Chinese security personnel had come to assist Nepali villagers in border areas. It is said the security personnel saw pictures of the Dalai Lama hanging in Nepali houses, which alarmed them. 

Tatopani Bazar, an important business hub for Chinese goods, was subsequently relocated. Once a bustling trading post is now deserted. Although the Tatopani border did come into operation in 2019, it was restricted to the movements of cargo trucks to curb the spread of Covid-19. To this day, only limited cargo is allowed into Nepal from the border point, hitting Nepal’s exports to China and contributing to a swelling trade imbalance.  The Chinese side has yet to clearly spell out why the movements of goods to Nepal from its border points are being restricted.  Domestically, the Beijing government has taken a zero-Covid policy under which it has introduced some draconian measures, such as strict and targeted lockdowns irrespective of their consequences. It has adopted strict measures with not just Nepal but all its neighboring countries. A surge in Covid-19 cases has been recently reported in several cities of Tibet, forcing the government to enforce strict lockdowns. Dozens of Nepali trades have tested positive for the infection and they are stranded in Tibet, as the border points have been completely closed for the past two weeks.  Bishnu Pukar Shrestha, Nepali ambassador to China, says Beijing has pledged to ease restrictions when Covid-19 subsides.   “The Chinese side has communicated that they have locked down major cities in Tibet, so it will take some time for things to normalize,” he says. The complete opening of the Nepal-China border points is not going to happen in the immediate future. This was made clear by the Chinese officials to Foreign Minister Narayan Khadka during his China visit on Aug 8-10. With the festive season approaching, Nepali traders are growing impatient. Ashok Kumar Shrestha, Chairman, Nepal Trans Himalaya Border Commerce Association, says businesses have been badly hit as the Nepal-China border points have not been fully operational in the past seven years. “The Chinese side has been releasing only a limited number of cargo trucks,” he says. “Surely, there must be reasons beyond Covid-19 for this.” Around 200 cargo trucks bearing goods bound for Nepal are stranded on the Chinese side. On Aug 29, a delegation of Nepali traders submitted a letter to the Ministry of Industry, Commerce and Supplies with a request to take immediate measures to ease border restrictions. Expectations were high when Nepal and China signed the Transit and Transport Agreement in 2016 following the blockade imposed by India in 2015. The general feeling was that Nepal would no longer have to depend only on India to bring in foreign goods. But since the signing of the agreement six years ago, there have been continuous obstructions on the movement of goods across Nepal-China border points.  Nepal’s trade and commerce relations with China are deteriorating, not improving as was expected during the agreement’s signing. Nepali traders have been expressing their concerns, to no avail. The Chinese side has time and again reiterated that the border points will come into full operation after the Covid-19 crisis is over. It has offered no timeline and no hope to the distraught traders.  Foreign relations experts say as China is reluctant to open up about its concerns and fully operationalize its border points, Nepali officials should find out what is bothering Beijing and try to address the situation. Upendra Gautam, general secretary of China Study Center Nepal, says Nepal should not hesitate to ask China if there are other issues beyond Covid-19 restricting the movement of goods into Nepal. “For China, security is more important than trade and economy,” Gautam adds. He is of the view that the two countries should have an honest talk on the matter.  “China’s restrictions at the Tatopani and other border points follow from security concerns,” says an official with the Ministry of Industry who does not wish to be identified.    Like Gautam, he too is in favor of the two governments engaging in frank discussions to fully operate the border points.