Nepal's Prime Minister, KP Sharma Oli, has raised a strong objection to the recent agreement between India and China to resume trade through the Lipu Lekh Pass, a disputed territory claimed by Nepal.
PM Oli who is in China to attend the Shanghai Cooperation Organization (SCO) Summit 2025, as well as activities to commemorate the 80th anniversary of the victory in the Chinese People's War of Resistance against Japanese Aggression and the World Anti-Fascist War, met with Chinese President Xi Jinping on Saturday, where he emphasized that the Lipu Lekh Pass is part of Nepalese territory.
A statement from Nepal's Ministry of Foreign Affairs outlined Oli's position: "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 that the Government of Nepal has lodged a strong objection."
This issue stems from the agreement signed on August 19 during the visit of Chinese Foreign Minister Wang Yi to India. Both countries agreed to resume trade from Lipu Lekh, a site that remains disputed between Nepal and India. Following the agreement, Nepal’s Ministry of Foreign Affairs immediately issued diplomatic notes to both nations, expressing its objections.
In 2020, Nepal published a new political map incorporating Kalapani, Lipu Lekh, and Limiyadhura as part of its territory.
It remains unclear how the Chinese side has responded to Prime Minister Oli's statement. Prior to his departure to China for the SCO summit, PM Oli had confirmed that he would raise the Lipu Lekh issue with both India and China. It is unclear yet whether Oli and Indian Prime Minister Narendra Modi will meet on the sidelines of SCO meeting.
In the bilateral meeting, Nepal PM expressed the hope that projects listed under the Belt and Road Initiatives (BRI) would be advanced, adding that Nepal seeks Chinese support in the areas of fertilizer, petroleum exploration, human resource development, climate resilience and other areas.
Speaking highly of the China-Nepal good-neighborly friendship in the past seven decades, Xi said that the high-quality Belt and Road cooperation between the two countries is advancing steadily at present, according to China. China is willing to work with Nepal to carry forward the traditional friendship and facilitate the greater progress of the China-Nepal Strategic Partnership of Cooperation Featuring Ever-lasting Friendship for Development and Prosperity, Xi noted.
Joint efforts should be made to enhance connectivity programs covering port, highway, power grid, aviation, communications and other fields, and cooperation in sectors including industry, agriculture and animal husbandry, new energy, environmental protection, oil and gas, artificial intelligence, education, health, as well as law enforcement and security, should be advanced, he added.
According to Chinese official media, Oli said that Nepal supports the China-proposed Global Development Initiative, Global Security Initiative and Global Civilization Initiative, and expects China to play a greater role in international affairs.