Himalayan High Stakes: Nepal Challenges India-China Lipulekh Trade Route Deal
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- August 31, 2025
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A diplomatic tremor has rippled through the Himalayas as Nepal's Prime Minister K.P. Sharma Oli firmly registered his nation's strong objection to a bilateral agreement between India and China regarding the use of the contentious Lipulekh Pass. In a direct and unequivocal address to Chinese President Xi Jinping, PM Oli asserted Nepal's sovereign rights over the strategically vital mountain pass, challenging an accord that has long been a source of diplomatic friction for Kathmandu.
The core of the dispute revolves around a 2015 agreement between New Delhi and Beijing, which designated Lipulekh Pass as a trade route between the two Asian giants.
However, this pact was struck without any consultation with Nepal, which has historically claimed the pass as an integral part of its territory. For Nepal, the agreement represents a profound disregard for its sovereignty and territorial integrity, a sentiment that PM Oli made abundantly clear during his high-level meeting with President Xi.
During the significant diplomatic engagement, PM Oli reportedly conveyed to President Xi that the Lipulekh issue must be resolved through bilateral negotiations exclusively between India and Nepal.
This stance firmly rejects any third-party involvement or agreements that pre-empt or undermine Nepal's claims. His objection underscores Kathmandu's determination to uphold its territorial claims, which include not only Lipulekh but also Kalapani and Limpiyadhura, areas that have been depicted within Nepal's revised political map.
The Lipulekh Pass, perched at a formidable altitude in the Himalayas, holds immense strategic importance.
It serves as a tri-junction border point between India, China, and Nepal, making its control and usage a sensitive geopolitical matter. Historically, it has been used by pilgrims en route to Kailash Mansarovar and as a traditional trade route. However, its status has been a point of contention, particularly since India's construction of a road connecting Dharchula to Lipulekh, which further intensified the dispute and sparked widespread protests in Nepal.
PM Oli's bold move to directly confront President Xi on this matter signals a heightened assertiveness in Nepal's foreign policy, especially concerning its territorial integrity.
It highlights Nepal's strategic balancing act between its two powerful neighbours, India and China, while striving to protect its national interests. The international community will be closely watching how Beijing and New Delhi respond to Kathmandu's resolute stand, as the future of Lipulekh Pass remains a critical test of diplomatic prowess and respect for sovereignty in the region.
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