While the world is overcoming the severe consequences posed as a result of COVID-19, the traders in Nepal continue to be the victims of the ‘undeclared’ Chinese blockade, incurring heavy losses. Since the spread of COVID-19, the Chinese side has imposed an ‘undeclared’ blockade disallowing smooth movement of the Nepali containers across the border and endangering the safety of Nepalis living at the border.
According to the reports, among the nine trading routes between Nepal and China, the latter has constricted the two important trading points- Rasuwagadhi and Tatopani. The country is allowing not more than two to three Nepali truckloads of goods per day. Nepali traders report that since January 2020, more than 300 trucks have been stranded at Kerung and Tatopani border points. The other routes unofficially restricted by the Chinese side include Hilsa, Nagcha, Ko Rala, Gorkha Larka, Lamabagar, Kimathanka, and Olangchung Gola.
The Nepali traders have been long protesting against the unfair, unofficial ban posed by the Chinese side that is disrupting the trade pact between the two countries. They have been demanding the removal of the undeclared blockade ensuring full-fledged smooth trade between the two countries. They have also been protesting against the excessive Chinese interference in Nepal’s internal affairs and encroachment of Nepali territory at various places along the northern border. The recent protests held were in January 2022 in Rasuwagadhi.
On January 13, the Chinese Embassy in Kathmandu had announced the opening of cargo transportation to Nepal and had said that the country was making efforts to overcome the trade difficulties. “We look forward to working with the Nepali side to overcome the present difficulties and make efforts to restore the economy and normal personnel exchanges”, the Embassy was quoted.
China-Nepal Agreement on trade and transit-
In May 2016, former PM KP Oli had signed a Transit and Transportation Agreement with the Chinese government, which would theoretically enable Nepal to make use of Chinese ports. The trade deal also allowed people living within 30 km on either side of the border, to travel freely by merely providing residence proof to engage in barter trade. But there has been no progress in the implementation of the deal since 2016.
The Nepali traders have also accused the Chinese side of not issuing visas to them and further not allowing them to travel on the other side of the border for trade purposes. Reports mention that the Nepali traders have since then stopped ordering new goods from China.
Trade between China and Nepal affected in numbers-
The issue of undeclared blockade had come to light earlier last year when the Nepali traders had reported that their trucks carrying clothes, cosmetics, shoes, electronics, industrial raw material had been stopped from entering China for more than sixteen months. Nearly 2000 trucks carrying goods were stranded at the border points in the pretext of COVID-19 prevention. As a result, the Chinese exports to Nepal have reduced by 3 per cent from 17.6 per cent and Nepal’s export to China have reduced by 0.4 per cent from 1.8 per cent in the span of two years. In the first six months of the current fiscal year, the exports to China have further reduced by 50 per cent.
The Chinese side has also hiked the freight charges. According to the new charge rates, the cost of transporting goods over the 26 km distance from the Chinese border point to the Nepali border point has been raised to RMB 60,000-65,000 per container. Earlier the cost of transporting goods used to be RMB 15,000-16,000.
Reports mention that the Nepali government has approached China through the Foreign Ministry to find a diplomatic resolution to the issue, but to no avail. This is ahead of the Chinese Foreign Minister Wang Yi’s visit to Nepal that is scheduled from March 25 to 27. Though the visit is specifically to explore bilateral ties and discuss the BRI projects, the issue of ‘undeclared blockade’ is also likely to be talked about between the diplomats.
