Nepal PM Opposes India-China Trade Via Lipulekh In Talks With Xi Jinping Ahead Of SCO Summit

Last Updated:August 31, 2025, 07:26 IST

Nepal PM KP Sharma Oli conveyed the message directly to Chinese President Xi Jinping during bilateral talks in Tianjin, held just ahead of the 25th SCO Summit

Nepal PM KP Sharma Oli with Chinese President Xi Jinping in Tianjin | Image: ANI

Nepal Prime Minister KP Sharma Oli on Saturday raised strong objections to the India-China agreement to resume border trade through Lipulekh, asserting that the area is Nepali territory under the 1816 Sugauli Treaty.

Oli conveyed the message directly to Chinese President Xi Jinping during bilateral talks in Tianjin, held just ahead of the 25th Shanghai Cooperation Organisation (SCO) Summit and the SCO Plus meeting.

According to Foreign Secretary Amrit Bahadur Rai, Oli reminded Xi that the Sugauli Treaty had demarcated the Mahakali River as the boundary, and all areas east of the river — including Lipulekh — belong to Nepal.

“The issue of Lipulekh was also raised (by the Prime Minister). Regarding that matter, the Prime Minister stated that the Sugauli Treaty of 1816 AD has made the demarcation of Nepali territories; as per which all the areas that lies on the east of Mahakali River is of Nepal and those areas are being used — Lipulekh is being used for trade through an agreement should not have been made and China should not cradle the agreement as Nepal have objection over it, this clear message was conveyed," Rai said.

The Prime Minister’s office also said Oli made Nepal’s stance unambiguous: “During the meeting with President Xi, the prime minister clearly conveyed Nepal’s objection to the India-China agreement to develop Nepali territory Lipulekh as a trade route."

The Nepal Embassy in Beijing echoed the same position in a statement, stressing that Oli had firmly reiterated Kathmandu’s opposition.

“Referring to the recent understanding reached between India and China on border trade through Lipu Lekh Pass, the Rt. Hon. Prime Minister stated that the territory belongs to Nepal and the Government of Nepal has registered its strong objection to the same," the Embassy said.

The controversy reignited earlier this month after India and China agreed in New Delhi to reopen trade through the Lipulekh Pass, located in Nepal’s Darchula district.

In response, Nepal’s Ministry of Foreign Affairs reaffirmed on August 20 that the official map of Nepal — enshrined in its Constitution — includes Limpiyadhura, Lipulekh, and Kalapani as integral parts of the country.

India, however, has maintained that border trade through Lipulekh has been in place since 1954 and was only disrupted in recent years due to the pandemic and other developments. “Both sides have now agreed to resume it," New Delhi said in a statement.

After his meeting with Xi, Prime Minister Oli described the talks as “fruitful."

In a post on X, he wrote: “Glad to meet President Xi for the second consecutive year and hold fruitful bilateral talks. We reviewed progress on various issues and agreed upon to enhance bilateral cooperation. I thank President Xi for inviting me to the SCO Plus Summit."

Nepal has been participating in SCO gatherings as a dialogue partner since 2016, but has long sought an upgrade to observer or full-member status.

While full membership would secure Kathmandu’s seat at every summit of the regional grouping, its unique geopolitical position between India and China has made the decision complex.

This marks Oli’s second visit to China since returning as prime minister for a fourth term in July 2024. His previous official visit was in December last year.

Location :

China

First Published:

August 31, 2025, 07:24 IST

News world Nepal PM Opposes India-China Trade Via Lipulekh In Talks With Xi Jinping Ahead Of SCO Summit

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