KATHMANDU, Aug 31: Prime Minister KP Sharma Oli, currently on an official visit to China, has objected to the recent agreement between Beijing and New Delhi on trade through Lipulekh, asserting that the territory belongs to Nepal.
At a meeting with Chinese President Xi Jinping at the State Guest House shortly after his arrival in Tianjin to attend the Shanghai Cooperation Organization (SCO) Summit on Saturday, Prime Minister Oli expressed Nepal’s strong objection to the China–India agreement to use Lipulekh—an integral part of sovereign Nepal—as a trade route, according to Foreign Secretary Amrit Bahadur Rai, who attended the meeting.
“As stipulated in the Sugauli Treaty of 1816, all territories east of the Mahakali River indisputably belong to sovereign Nepal. Nepal firmly believes that China will support it on this matter,” Rai quoted Oli as telling President Xi. He added, “Just as Nepal has made it clear that its territory will never be used against any country, it equally objects to agreements made by other countries concerning its land.”
In response, President Xi said he had no differing opinion on Nepal’s position and expressed hope that the matter would be resolved through dialogue between Nepal and India, according to Rai.
Experts call for measured diplomacy in Lipulekh dispute
The Embassy of Nepal in Beijing, in a statement, said that Prime Minister Oli conveyed Nepal’s position during the bilateral meeting with President Xi. “Referring to the recent understanding reached between India and China on border trade through Lipulekh Pass, the Rt. Hon. Prime Minister stated that the territory belongs to Nepal and the Government of Nepal has registered its strong objection,” the Embassy said.
However, the press release issued by the Chinese Foreign Ministry made no mention of the Lipulekh issue raised by Nepal. “China stands ready to work with Nepal to carry forward the traditional friendship and take the China–Nepal strategic partnership of cooperation to new heights, featuring ever-lasting friendship for development and prosperity,” the statement read.
The agreement between India and China to resume trade through Lipulekh—a Himalayan pass that Kathmandu maintains lies within its sovereign territory—has reignited tensions between Nepal and its southern neighbour. In response, Nepal’s Ministry of Foreign Affairs (MoFA) issued a strong three-point statement, reiterating that Limpiyadhura, Lipulekh, and Kalapani are integral parts of Nepal as recognised by the Constitution and official map.
MoFA also urged India to halt construction, expansion, and trade activities in the area, while reminding both India and China that, under the 1816 Treaty of Sugauli, all land east of the Mahakali River belongs to Nepal. Nepal maintains that historical records, including a 1911 British-Indian Gazetteer, identify the Kuthi Yankti (originating from Limpiyadhura) as the true source of the Kali River, bolstering its claim.
India, however, rejects Nepal’s stance. The Indian Ministry of External Affairs has described Nepal’s position as “untenable” and not based on historical facts, arguing that Lipulekh trade with China began in 1954 and is purely a bilateral matter that does not involve Nepal.
During his talks with Xi, Oli also thanked China for its continued development assistance and reaffirmed that Nepal–China relations are anchored in the Five Principles of Peaceful Coexistence (Panchsheel), characterised by stability and mutual respect.
Oli sought China’s support for Nepal’s bid to gain full membership in the SCO, noting that this year marks the 10th anniversary of Nepal’s participation as a dialogue partner and the 70th anniversary of diplomatic ties between the two countries. He also called for faster implementation of Belt and Road Initiative (BRI) projects and requested cooperation in areas such as fertilizer supply, petroleum exploration, human resource development, climate resilience, and people-to-people connectivity.
During the meeting, Nepal reiterated its support for Chinese initiatives including Global Development Initiative, Global Security Initiative, Global Civilization Initiative, while pledging its support to Shanghai Spirit, according to the statement issued by the Chinese foreign ministry. Nepal also called for a deeper China-Nepal role in global platforms.
President Xi assured Oli of China’s continued support for Nepal’s development agenda, including its vision of a “Prosperous Nepal, Happy Nepali.” He also pledged to deepen multilateral cooperation through the UN and SCO, commended Nepal’s consistent support for the “One China Principle,” and vowed to expedite high-quality BRI projects.
Oli landed at Tianjin Binhai International Airport on Saturday afternoon aboard a Himalaya Airlines flight, leading a delegation that includes First Lady Radhika Shakya, former Deputy Prime Minister Purna Bahadur Khadka, Education Minister Raghuji Pant, Tourism Minister Badri Prasad Pandey, former finance minister Dr. Yubaraj Khatiwada, and other senior officials.
The prime minister is scheduled to attend the SCO Summit and hold meetings with other world leaders. He will return to Kathmandu on September 4.
