China’s zero-Covid policy turns Nepal border towns into ‘dead’ zones as trade routes dry up

Nepal’s 1,389km-long border with China is closed to the country’s exporters, though a trickle of Chinese goods continues to flow the other way

China’s border restrictions have disrupted bilateral trade, created uncertainty among Nepali importers and affected indigenous communities

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Traffic moves along a road in Nepal’s capital Kathmandu. Photo: Bloomberg

Published: 8:15am, 24 Aug 2022Updated: 9:25am, 24 Aug 2022

China’s zero-Covid policy is proving a major obstacle to the resumption of two-way trade with Nepal, with border closures causing a sharp decline in Nepalese exports to the world’s No 2 economy and losses for merchants.

China has kept its borders tightly sealed even as much of the world has reopened over the past year, leaving a backlog of trucks and mounds of rotting fruit stuck at some checkpoints it shares with neighbouring countries, such as Vietnam and Myanmar.

Nepal’s 1,389km-long border with China, including the two main crossings at Rasuwagadhi-Gyirong and Tatopani-Zhangmu, has been closed to the country’s exporters for the past two years, though a trickle of Chinese goods has been allowed to flow the other way.

Most of Nepal’s exports are snapped up by India, so the Chinese market is not considered critical. But the border restrictions have severely disrupted bilateral trade, stoked business uncertainty and affected indigenous communities and farmers who rely on cross-border commerce for their livelihoods, experts say.

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“Before Covid there were 80-90 containers coming in [to Nepal], but now in Rasuwagadhi, only three to seven come in a day and not more than 14,” said Vijay Kant Karna, Nepal’s former ambassador to Denmark and executive chairman of Centre for Social Inclusion and Federalism (CESIF).

China’s zero-Covid policy turns Nepal border towns into ‘dead’ zones as trade routes dry up

Nepal’s 1,389km-long border with China is closed to the country’s exporters, though a trickle of Chinese goods continues to flow the other way China’s border restrictions have disrupted bilateral trade, created uncertainty among Nepali importers and affected indigenous communities

Nepal’s 1,389km-long border with China is closed to the country’s exporters, though a trickle of Chinese goods continues to flow the other way

China’s border restrictions have disrupted bilateral trade, created uncertainty among Nepali importers and affected indigenous communities