Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The vital China-Nepal trade route through the Rasuwagadhi border has been completely severed following a massive flood from the Chinese side that swept away the Miteri Bridge—Nepal’s key customs and commercial lifeline with its northern neighbor.
According to preliminary estimates, this natural disaster has not only destroyed critical infrastructure but also brought Nepal-China cross-border trade to a complete halt, raising concerns over multi-billion-rupee trade disruptions in the coming weeks.
Catastrophic Impact on Border Infrastructure
The flood that occurred late last night washed away the Miteri Bridge, which connects Nepal to China through the Rasuwagadhi customs point. Additionally, the Rasuwagadhi Dry Port (customs yard) sustained severe damage, including the destruction of dozens of electric vehicles (EVs) that were parked in the bonded warehouse area. Police sources estimate extensive financial losses, alongside possible risks to human lives.
Rasuwagadhi: A Strategic Trade Gateway Severed
In recent years, the Rasuwagadhi border has gained increasing importance due to its shorter trade route with China, providing Nepali traders with a cost-effective and efficient means of importing and exporting goods. The latest data from the Department of Customs reveals the sheer magnitude of this route’s significance:
As of mid-June 2025 (end of Jestha month in the current fiscal year), Nepal imported goods worth Rs.80.81 billion from China via Rasuwagadhi.
Meanwhile, exports from Nepal to China via the same route stood at Rs.19.61 billion.
The sudden collapse of this corridor has placed the logistics and supply chain operations of thousands of traders in limbo, especially those preparing for the upcoming festival season.
Goods Traded Through the Route Now Stalled
Nepal mainly imported electric vehicles (EVs), toys, garments, footwear, and fruits from China through Rasuwagadhi. In contrast, Nepal exported goods such as tea, books, printed materials, handicrafts, woolen and pashmina items, wooden crafts, paintings, and stone sculptures to China.
With the road and bridge infrastructure completely destroyed, the short-term trade prospects between the two nations have plunged into uncertainty, and the resumption of commercial flow may take months depending on the reconstruction pace.
High-Level Disruption Raises Policy Concerns
This incident highlights Nepal’s vulnerability to climate-induced disasters and the lack of resilient infrastructure at critical trade points. With billions in trade now jeopardized, traders, exporters, and importers are demanding swift government action to restore connectivity and prevent further losses.
Moreover, experts suggest that the government must diversify its border trade dependency and improve disaster-resilient infrastructure at major customs points to ensure uninterrupted trade flows in the future.
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