With Nepal’s northern border point not coming into full operation even after five months, traders have started dubbing it an unofficial ‘blockade’ by China.

Traders are frustrated at the slow pace of construction of Miteri Bridge and a trickle of containers through the Tatopani border.

Despite the Tatopani border point being fully functional, why is the Chinese side allowing only a minimal flow of goods carriers?, said Ram Hari Karki, president of the Nepal Trans-Himalayan Border Commerce Association.

“With both major trade routes not coming into operation for months, trade has become chaotic. The situation looks like an unofficial blockade by China.”

Why should it take five months to construct a Bailey Bridge, Karki questioned.

Traders at New Road, a shopping hub and major trading point in Kathmandu Valley, share similar suspicions.

“The goods I ordered for the Teej festival have been stuck on the Nyalam side,” said Pradip Maharjan, a wholesale and retail trader at Khichapokhari.

“I ordered winter garments from the Kerung side after hearing that the border point would come into operation from November. But a month has passed and there are no signs of the border opening [soon],” Maharjan said.

Maharjan took a loan from a bank which he thought would be repaid with festive sales. But nothing happened and the interest on his loan is growing.

Almost every trader importing goods from China is in a similar fix. Nobody knows when their goods will arrive.

If the winter goods do not arrive on time, they need to be stored for a year, which will increase the cost.

The floods that hit Rasuwagadhi on July 8 swept away the Nepal-China Friendship Bridge (Miteri Bridge), halting trade and cross-border movement. A temporary bridge is being constructed by China but it is yet to come into operation.

“We have time and again been requesting trade facilitation for smooth functioning of the Tatopani border point till the time the Rasuwagadhi border point reopens,” said Jitendra Basnet, joint secretary at the Ministry of Industry, Commerce and Supplies. However, the problem remains persistent. The Tatopani border has been operated tightly by Chinese officials for the past few years.

The official said that Beijing seems focused on easing trade through the Korala border.

“We have raised the issue during consultations to facilitate trade from all three border points with the Chinese ambassador and during joint-secretary level talks,” Basnet said. “But, there’s no outcome.”

According to Karki, the Bailey bridge has yet to be set up. The construction work should have been finished within a month. Earlier it was said that the bridge will come into operation from November.

Even around 500 containers carrying fruits have been stranded. So far 400–500 containers have arrived via Tatopani since Dashain.

Despite the halt in trade, the total trade with China has increased by 27.92 percent in the first four months of the current fiscal year until mid-October.

According to the Department of Customs, Nepal imported goods worth Rs132.56 billion in the review period while exports totalled just Rs298.84 million.

Nepal imported goods worth Rs298.77 billion from China in the fiscal year 2023–24, while exports to China were worth just Rs2.58 billion, leading to a trade deficit of Rs296.18 billion.

Even the import of electric vehicles (EVs) declined due to the trade halt.

EV dealers said they have had a difficult time meeting the festive demand this year.

Nepal imports garments, footwear, bags, clothing accessories, mobile phones, consumer electronic goods and EV mostly from China.

Traders have been diverting their shipments, including EVs, through the Korala route, and vehicles continue to arrive from there. However, the trade point is about to come to closure due to declining temperature which goes to minus degrees.

The Korala customs point, located at an altitude of 4,650 metres in Upper Mustang and opened for international trade in September, has come as a relief for traders.

This border point was officially opened in November 2023.

Trade experts noted that while Korala offers a crucial link to China, its operation faces challenges from weak infrastructure on the Nepali side and harsh weather at the high altitude. Also, the time and cost is also high to bring goods to Kathmandu compared to the Rasuwagadhi and Tatopani points.