Monday, July 22, 2024

Nepal-China Trade: Pros And Cons

The illegal importing of electronic gadgets through the Nepal-China border for sale without taxes. We should take responsibility for the Nepal government imposing tariffs on personal importing goods where GCC migrant workers are facing the real issues.

Nepal-China trade has historically driven economic growth and prosperity. For a very long both countries have had to prosper in this fruitful relationship through mutual affection and warmth. Along with Nepal-China trade pros and cons. 

It might really be hard to understand where it all began, but history suggests the days were an exchange of Nepali and Chinese monks, scholars, and even princesses who traveled to bring change. We are always grateful to those who have helped flourish this friendship.

Coming to the present context, trade between Nepal-China has its pros and cons. So, let us look into the pros and cons of Nepal- China Trade and the present context.

Advantages of Trade

There are two significant trade routes connecting Nepal and China: the Rasuwagadhi-Kerung route and the Tatopani-Zhangmu (also known as Khasa) route.

China has zero-tariff treatment for about 8,000 Nepali commodities heading for its market. Which is a critical component of this collaboration. That means there is no taxes on goods while importing from Nepal. These taxes to be paid by importers when they bring their goods into the customs agency of the country or group that applies these fees.

In this trade dynamic, major products of export include leather, carpets, and numerous agricultural items. This favorable treatment accounts for about 95% of Nepal’s total exports to China. It is worth noting that these goods must agree to harsh rules of business conditions to qualify for the desired Chinese zero-tariff privilege. Good news is

The Tatopani trade route is finally available for two-way trade after being closed for eight years. Resulting in the loss of life and property on both sides, following the 2015 earthquake. Activities were temporarily shut down, only to be interrupted again by the Covid-19 epidemic.

Disadvantages of Trade

There have always been trade imbalances between the countries. In the first eight months of the current fiscal year, Nepal’s imports from China fell by 21.68 percent to Rs145.78 billion, compared to Rs264.78 billion the previous year. During the same period, Nepal’s exports to China fell by 4.85 percent, totaling Rs519.36 million, compared to Rs808.75 million in the previous fiscal year. Because of this trade imbalance, Nepal faces a significant trade deficit. Nepal’s main imports from China during the first seven months of the current fiscal year include computers and their components, electronic devices, machinery and parts, readymade clothes, telecommunications equipment, and textiles.

Nepal, on the other hand, exports handcrafted objects, both metal and wooden, as well as pashmina to its northern neighbor. Given these trade differences, it is important that we, as consumers and importers, show cautiously. We must take caution and carefully pick our imports to fix this imbalance.


In the context of Nepal-China trade, history and modern challenges coexist. Trade routes between these countries provide potential for various Nepali items. Helping many Nepali families make food in their homes. However, we must remember the type of good we are exporting: ancient culture and patience to mere technology, at what cost. 

Trade imbalances remain, requiring careful import analysis. As the Tatopani trade route reopens after an eight-year break, Nepal and China hope to achieve a more balanced trade balance.

Appsha Digital

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