KATHMANDU, India and China have reached an agreement to resume trade through the Lipulekh pass, a route that falls within Nepali territory. The agreement was made during Chinese Foreign Minister Wang Yi’s visit to India earlier this week at the invitation of Indian National Security Advisor Ajit Doval.

The move is expected to reignite the long-standing dispute between Nepal and its two neighbors.
In 2015, during Indian Prime Minister Narendra Modi’s visit to China, the two countries agreed to open the Lipulekh pass for trade. Nepal strongly objected, sending a diplomatic note of protest. Despite Nepal’s objection, India continued to develop trade routes through the disputed territory.

On November 2, 2019, India included Kalapani—a region inside Nepal’s territory—in its revised political map while depicting Jammu and Kashmir as part of India. This escalated the dispute between the two countries.

Further tensions arose in May 2020, when Indian Defense Minister Rajnath Singh inaugurated a road through Lipulekh leading to Mansarovar in China. In response, then-Nepali Foreign Minister Pradeep Gyawali summoned the Indian ambassador and handed over a diplomatic note. On May 20, 2020, Nepal officially released an updated political map, incorporating Limpiyadhura, Lipulekh, and Kalapani within its territory.

The issue flared again on September 1, 2023, when China issued a map depicting Lipulekh as part of India. Nepal’s Ministry of Foreign Affairs responded with a statement urging both neighbors and the international community to respect Nepal’s official map.

Analysts note that India and China, whose relations have warmed in recent years amid U.S. trade tariffs, have now chosen to move forward with trade through Lipulekh pass—Nepal’s territory claimed by both neighbors.