Nepal’s trade with China has been significantly disrupted in recent weeks due to closures and operational challenges at its three primary border crossings, raising concerns over the availability of goods ahead of major religious festivals such as Teej, Dashain, and Tihar.

The Tatopani border in Sindhupalchok district remains closed after landslides blocked critical sections of the Bahrabise-Tatopani stretch of the Araniko Highway. The closure has persisted for nearly two weeks, according to the Nepal Trans Himalayan Border Commerce Association, which reported that over 40 cargo trucks destined for China are stranded on the Nepalese side, while numerous containers remain stuck in the Chinese border town of Khasa. The association has called on the government to expedite repairs, improve landslide mitigation, and consider a special budget allocation for road maintenance to prevent prolonged closures throughout the ongoing monsoon season. Ram Hari Karki, the association’s president, warned that failure to reopen the route could disrupt trade during the crucial festival period.

Tatopani has a history of vulnerability to natural disasters, having been affected by the 2014 Jure landslide and the 2015 Gorkha earthquake, both of which severely disrupted cross-border commerce. This year’s landslides have blocked the highway at three points, complicating reopening efforts. Local residents have expressed safety concerns regarding the potential impact on nearby homes if the upper road section is reopened. Authorities are exploring alternative routes closer to the river; however, construction is ongoing and managed by Chinese contractors, which may delay completion.

Nepal’s chief customs officer at Tatopani, Tul Bahadur Pandey, noted that the current closure has serious financial implications for customs revenue, with the office setting a target of Rs25 billion for the fiscal year. Normally, the customs office processes up to Rs130 million daily, including duties on electric vehicle imports. The long-standing suspension of exports through Tatopani, which has remained since the 2015 earthquake due to restrictions on outbound Nepali cargo from China, adds to the challenges faced by Nepalese traders.

The Rasuwagadhi border crossing in Rasuwa district partially resumed operations earlier this year after a flash flood last July swept away the border bridge and damaged customs facilities. Despite reopening, the route remains precarious amid persistent monsoon rains, with Karki describing the crossing as risky and uncertain due to the potential for landslides. The Rasuwagadhi point processed imports worth Rs45.73 billion and exports of Rs894.6 million during the last fiscal year; however, its full operational stability remains in question.

Traders have increasingly relied on the Korala border at Mustang district following disruptions at Tatopani and Rasuwagadhi. Officially opened for international trade last year, Korala operates at an altitude of approximately 4,650 meters and currently handles a limited volume of two to three cargo vehicles daily, primarily carrying garments and footwear. In the previous fiscal year, Korala accounted for imports valued at Rs14.4 billion and exports of Rs205.57 million.

Overall, Nepal’s imports from China reached Rs425.24 billion in the last fiscal year, a 24.66 percent increase from the previous year. Meanwhile, exports to China declined by 28.13 percent to Rs1.89 billion, resulting in a trade deficit of Rs423.35 billion. Key imports included smartphones, diammonium phosphate, electric vehicles, motor vehicles, apples, synthetic fibers, fertilizers, laptops, iron and steel, textiles, and passenger vehicles.

The ongoing disruptions at these critical border points highlight the fragility of Nepal’s trade infrastructure with China and underline the urgent need for government interventions to ensure reliable connectivity ahead of peak seasonal demand.