Sindhupalchok: 54-year-old Chhiring Sherpa is a food trader from Liping Bazaar, Bhote Koshi Rural Municipality-2, along the Nepal-China border. Many of his friends moved to Kathmandu, while some went to Bahrabise in Sindhupalchok. He, however, did not want to leave his birthplace.

Before 2015, Tatopani border was bustling with traders. Transport businessmen rented almost all houses in Liping Bazaar. They set up offices and employed staff. Houses that were once hard to buy even for Rs 10 million in Liping are now being sold for 2–2.5 million, and locals have begun relocating.

Between 2005 and 2015, the border was extremely busy. When the border was bustling, Nepalis would often go to Khasa market to shop. Crowds from Kathmandu also flocked to Khasa market.

Two and a half years ago, the border reopened unilaterally. But the old vibrancy never returned.

Now Liping is deserted. Even for groceries, border residents have to rely on the Chinese side. Strict measures from China have made local life difficult.

The road from Bahrabise Bazaar to Liping, a distance of 26.8 kilometers, is in disrepair. This demonstrates that the border is not a priority for either country.

“When I first went, it was paved. As I’ve aged, the road has continued to collapse and deteriorate. During the rainy season, I see mud flowing down from the hills,” says businessman Sherpa.

China has opened the border only for limited exports. During the rainy season, landslides and mudslides often block the road. The local rural municipality removes the debris with excavators once the rain subsides, temporarily reopening the road.

Locals say the road is difficult because of geography and natural disasters. It seems both countries are neglectful in ensuring the border remains operational.

China has already constructed a well-equipped road on its side. Nepal, however, shows little concern. “Until 2015, the road was at least passable. After the earthquake, landslides damaged it. The government is shirking its reconstruction responsibility,” says Sherpa.

In October 2019, Chinese President Xi visited Nepal. An agreement was made to upgrade the Araniko Highway in stages, from Dhulikhel to Tatopani.

In March 2015, then-President Ram Baran Yadav visited Hainan, China, to participate in the Boao Forum for Asia. At that time, Yadav and Chinese President Xi Jinping signed an agreement to provide Nepal a grant of 900 million yuan (about Rs 14.5 billion). The then-Foreign Minister Kamal Thapa signed the agreement to spend the grant on rehabilitating the Araniko Highway.

In October 2019, Chinese President Xi visited Nepal. An agreement was made to upgrade the Araniko Highway in stages, from Dhulikhel to Tatopani.

The Department of Roads proposed Rs 25 billion in financial assistance to the Ministry of Physical Infrastructure and Transport. The proposal reached the Ministry of Finance. “But neither ministry advanced the matter. The proposal is still stuck at the Department of Roads’ Foreign Coordination Division,” says former division chief Arjun Jung Thapa.

China has already constructed a well-equipped road on its side. Nepal, however, shows little concern.

The government’s extreme neglect in road reconstruction is claimed by Bishnu Bahadur Shrestha, operator of Small Heaven View Pvt. Ltd. hotel in Tatopani.

He recalls heavy activity when he opened the hotel in 2011. “Back then, tourists going to Mount Kailash and Mansarovar passed through Tatopani, up to 2,000–2,500 per day, and porters had work. After the 2015 earthquake, China closed the route to Kailash Mansarovar, and activity dropped drastically.”

Shrestha used to rent out the hotel for up to Rs 200,000 per month. After 2015, it stopped being rented. He now runs it himself. “Previously, the hotel employed a manager and ten staff. Now only family members are involved. Business is barely 30% of what it used to be,” he says.

Before the earthquake, Tatopani Bazaar had 100 households. Now it has shrunk to 25. Businessman Chhiring Sherpa says, “After the earthquake, we met every prime minister who came to power. Representatives from here became Speaker and ministers, but the road remains in the same condition.”

The Chinese side’s geography is also susceptible to disasters, but China has built roads protected from floods and landslides. Shambhu Sherpa, an old textile trader from Tatopani, says, “It’s not easy to move to the border. I don’t see a long-term plan from the government either.”

When the border was open, Sherpa used to import container-loads of Chinese textiles and transport them through the local market to Kathmandu. Now, his business is mostly limited to Kathmandu.

He has a wholesale shop for Chinese textiles in New Road. “After the earthquake, locals moved to Kathmandu and never returned. With the border closed for so long, working in the village became difficult. Roads remain under construction.

The road hardly functions during the three monsoon months,” he laments. Numerous hydropower projects are operational in the Bhote Koshi area, and although the government collects revenue from the unilaterally open border, it has neglected road construction, he complains.

Even though the border could operate bilaterally, only imports from China are happening, says Tatopani Customs Office chief Rajendra Prasad Chudal.

Currently, exports are only via Rasuwa. Nepal exports tea, coffee, rudraksha, herbs, and meat products. Chudal also acknowledges transport issues due to the road.

“Perhaps because the road hasn’t been built, there is little export from Tatopani. Nepali goods are exported in small quantities, mostly via Rasuwa,” he says.

After COVID-19, a “customs yard” was built at Tatopani with Chinese assistance. As the pandemic’s impact eased, China resumed exporting goods.

“Once the earthquake-damaged road became temporarily functional, trade up to Lhasa started expanding,” Chudal says. “Ready-made clothes, rolls of fabric, apples, and electric vehicles are being transported through this border. Occasionally, walnuts arrive. Earlier, a small quantity of garlic came through.”

In FY 2024/25, Tatopani Customs collected Rs 31.82 billion in revenue. The target was Rs 24.47 billion.

Statistics show that 50% of revenue came from electric vehicles. In that fiscal year, vehicles and their parts contributed Rs 7.65 billion.

Electric vehicles include microbuses, jeeps, vans, etc., with most electric cars and jeeps imported from MG Motors.

Now, trucks carrying electric vehicles and other goods are left at China’s border.

The “customs yard” is now at risk. The lower structure is being eroded by the Bhote Koshi River. The Intermodal Transport Management Committee allocated Rs 900 million for construction. There is no bridge over Larcha River. Miteri Bridge over Liping River was built by the army. Roads are broken everywhere.

Immigration currently provides Sindhupalchok locals a pass to travel one kilometer from the highway toward China. Locals use this pass to buy goods. Previously, citizens from both countries could travel up to 30 kilometers from the border.

Now, trucks carrying electric vehicles and other goods are left at China’s border. Drivers and porters usually cross into China. Nepali drivers must navigate the damaged road from Liping to reach customs. After passing inspection, they cross the damaged road to reach Kathmandu. Due to poor roads, large container trucks cannot operate.

By the end of fiscal year 2024/25, imports through Tatopani amounted to Rs 7.05 billion. During this period, 2,724 electric vehicles were imported, generating R 3.75 billion in revenue. Exports were zero.

Nepal has 14 traditional borders open with China, of which Rasuwa and Tatopani are main for trade. “Bilateral discussions have been held about expanding physical infrastructure. As the border opens, trade gradually increases,” says Bhrigu Dhungana, Joint Secretary of the Ministry of Foreign Affairs’ China Division.

Colorless Bahrabise

Before the earthquake, the market from Bahrabise to Sukute thrived due to pilgrims traveling to Mount Kailash and Mansarovar. Hindus from India, the US, UK, Canada, and Australia visited. Large gatherings of Indian pilgrims occurred. The route allowed overnight stays at Tatopani before heading to Khasa and Mansarovar. Local tourism businesses earned substantial income.

Typically, each pilgrim spent over Rs 300,000 for the journey to Mansarovar, but via Tatopani, NPR 150,000 was enough. Bishnu Bahadur Shrestha of Small Heaven View Pvt. Ltd. says about 10,000 pilgrims reached Tatopani during the three-month period from June to August.

Local hotel operators say the government should take initiative to reopen the route for Kailash Mansarovar.

Due to Indian pilgrims, porters were busy. One porter could earn Rs 3,000 daily, charging Rs 200 for carrying luggage across Miteri Bridge. In 2014, 7,000 Indian tourists reached Mansarovar via this border. Between June to August in 2013, 13,000 Indian pilgrims stayed in the area.

Local hotel operators say the government should take initiative to reopen the route for Kailash Mansarovar. Himalayan Cross-Border Trade Association and Sindhupalchok Chamber of Commerce have repeatedly requested the Prime Minister and ministers to open the border for religious travel. Nepal had informed the Chinese side.

Former Speaker Agni Sapkota says Nepal repeatedly requested China for religious travel. The Chinese side was willing, but it remains unclear why it hasn’t opened.

“I raised this issue myself as Speaker during a high-level visit. China cited COVID and other reasons. Later, they were willing. But why it didn’t open, I am surprised,” he says.

China’s neglect, Nepal’s apathy

Before 2015, Nepalis could take a one-day pass to visit Khasa market. Now they can travel only one kilometer from Miteri Bridge. Entry is restricted to regular vehicle drivers.

The earthquake-damaged border road from Tatopani to Nyalam has been rebuilt. Roads from Bahrabise to Liping and from Zhangmu Bridge to Tibet’s Nyalam are now functional. Even so, China has shown little interest in activating the border.

China has started building new markets within a ten-yard zone near the border to strengthen surveillance and control. Nepal’s dry port has also been relocated farther from Miteri Bridge to Larcha. China appears to be strategically routing trade goods from Nyalam directly to Larcha, Tatopani.

Customs, immigration, and quarantine offices have been built in Nyalam. On the Nepal side, physical infrastructure is under construction. The dry port built with Chinese aid now needs reconstruction.

On April 18, the then Foreign Minister Arzu Rana Deuba visited Tatopani Customs. She promised to take necessary action after inspection.

The main reason Tatopani is not a Chinese priority is increasing Tibetan activity in the area.

The dry port built with Chinese aid now needs reconstruction.

Before becoming Finance Minister, former Finance Secretary Rameshwar Khanal told Nepal News that the border was being tightly controlled because China was concerned that increased human activity might spark an “anti-China movement.”

“China is targeting Tatopani to maintain control over Dalai Lama supporters and the independent Tibet campaign. That’s why they do not fully open Tatopani,” Khanal said.

Khanal also blamed Nepali politicians for failing in border management. “Our leaders lack vision. There is no visible economic or trade activity at China’s borders. They praise China, but fail to take advantage of trade opportunities,” he said.