India, China resume trade via Lipulekh Pass despite Nepal's territorial objections

Trade has resumed between India and China via the Lipulekh Pass, a strategic mountain pass that Nepal claims as its own territory. The route, located within Nepal's western frontier according to Kathmandu's official map, saw its first commercial activity on Saturday with 16 Indian traders crossing into Tibet.

This reopening marks the end of a six-year suspension, with the pass having been closed since 2019 due to the COVID-19 pandemic. Preparations for the resumption involved extensive logistical arrangements, including finalizing trader permits, designating banks for currency exchange, and establishing customs and security facilities. Local journalist Prem Punetha noted that this year's trade will be significantly easier due to completed road infrastructure on both sides, allowing for vehicle transportation for the first time.

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With roads completed on both sides of the border, traders will have a much easier time this year.

Despite the advancements, traditional methods will still be necessary for a short stretch near the border due to security and administrative restrictions. The trade agreement allows Indian traders to import goods like wool and pashmina from China and export items such as garments and spices to China. Nepal, however, continues to voice its objections to the use of the Lipulekh route by its neighbors, maintaining its territorial claims.

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Road infrastructure is ready on both sides, so transportation will be smoother from this year.