Nepal's trade status with China

Despite increase in imports from China year on year, traders of Nepal seem to be unhappy with China opening borders at a time when the demand for goods is slow with no large orders for the Chinese goods because of high domestic bank interest rates and inflation in Nepal, The Kathmandu Post reported.

Despite increase in imports from China year on year, traders of Nepal seem to be unhappy with China opening borders at a time when the demand for goods is slow with no large orders for the Chinese goods because of high domestic bank interest rates and inflation in Nepal, The Kathmandu Post reported. In the first seven months of the current fiscal year, Nepal's top imports from China were ready-made clothing, telecommunications equipment and parts, textiles, machinery, computers and their parts, and electronic items.

The first eight months of the current fiscal year saw a 4.85 percent decline in Nepal's exports to China. In the most recent fiscal year, the nation sold items to China valued Nepalese Rupees 808.75 million, reported Kathmandu Post, as the Himalayan nation has a substantial trade deficit with China, which in the first eight months of the current fiscal year totalled Nepal Rupees 145.26 billion.

Around 2015, when the Nepali government reduced duties on items exported to the northern neighbour, business with China began to soar. Global freight prices increased due to the Covid-19 outbreak. As a result, prices for products have increased, significantly driving up inflation in nations like Nepal.

As per Kathmandu Post, between Nepal and China, there are two important commercial routes: Rasuwagadhi-Kerung and Tatopani-Zhangmu (also known as Khasa). On May 29, 2019, Tatopani-Khasa border point reopened after being shuttered for four years as a result of the 2015 earthquakes. The border crossing site was a crucial overland commercial route with the northern neighbour before the disastrous earthquakes destroyed infrastructure, generating more over Nepalese Rupees 15 million in daily revenue for the Tatopani Customs Office.

The primary land route for trade with China has historically been Tatopani-Khasa, about 115 kilometres from Kathmandu. Early in 2020, China blocked the border due to the Lhosar festival and significant snowfall.

On March 11, 2020, the World Health Organization labelled the coronavirus outbreak a pandemic. As a result, nations were forced to close their borders and some even implemented lockdowns to stop the sickness from spreading. Due to the 16-month ban on the entry of their cargo-laden container trucks, Nepali traders even accused China of establishing an "undeclared trade blockade." Officials from the Nepali government, however, have repeatedly denied any such intentional impediment, according to Kathmandu Post. (ANI)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)