KATHMANDU: While the world has been in throes of the pandemic, traders in Nepal have had a rough deal at the hands of China. They are the victims of an undeclared Chinese blockade and have incurred hefty losses.
The distraught traders are now pinning their hopes on the forthcoming visit of the Chinese foreign minister.
Nepal imports readymade garments, cosmetic products, footwear, consumer electronic items, and stationery goods, among other products, from China and exports handicraft items like metal statues.
The border trade between Nepal and China is facilitated through nine trade routes, including Hilsa, Nagcha, Ko Rala, Gorkha Larka, Rasuwagadhi, Tatopani, Lamabagar, Kimathanka, and Olangchung Gola; of these Rasuwagadhi and Tatopani are most crucial from the trade perspective and have been closed since January 2020. As reported, China had stopped nearly 2,000 containers laden with clothes, shoes, cosmetics, electronics, and industrial raw materials from entering Nepal.
Using Covid prevention as an excuse, China allows only four to five truckloads of goods each day from each of the two key border points -- Tatopani and Rasuwagadhi -- to enter Nepal.
Nepalese businessmen have protested against China's blockade both at Rasuwagadhi and Tatopani checkpoints at the Nepal-China border and demanded smooth movement of goods across the border, to no avail.
To harass Nepalese traders, the Chinese transporters even increased freight charges along the nearly 26 km stretch from RMB 15,000-16,000 to 60,000-65,000.
To make the matter worse, the Chinese government is not issuing visas to Nepalese traders. As a result, they place orders virtually and many have complained of being cheated. A case in point is where a Nepalese company Sun Moon Multi Trading Pvt. Ltd. had placed an order in September 2021, with China-based Changsha Washum Bamboo Products Trading Company Ltd. for supplying 5000 boxes of Disposable Latex Gloves.
The Nepali entity transferred about USD 25,000 to the Chinese company and as agreed, it was expecting goods within a month. However, the company is still awaiting the supplies. On being asked, the Chinese company said that it has shut shop and its bank accounts are frozen.
The closure of the border has not only caused losses to the traders but the government has also lost on account of low revenue collection. According to the Trade and Export Promotion Centre, imports from China dropped 18.5 per cent year on year.
A statement released by the Chinese Embassy in Nepal on Jan 13, 2022, said that "The Chinese side opened one-way cargo transportation to Nepal by overcoming great difficulties and has continuously enhanced the ports' cargo handling capacity, which played an important role in ensuring the supply of anti-pandemic and livelihood materials in Nepal.
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."
However, China has not initiated any step to ease the trade deadlock between the two countries.