Share of Chinese Imports in Nepal’s Total Trade Rising Consistently

Nepal’s imports from China have surged in recent months, with the northern neighbour’s share in the country’s total import bill increasing significantly despite prolonged closures of the Rasuwa and Tatopani border points earlier in the fiscal year.

Government officials say the rise is largely driven by high-value shipments arriving via sea routes and a rapid increase in imports of electric vehicles (EVs) from China.

According to data from the Trade and Export Promotion Centre, Nepal imported goods worth Rs 132.57 billion from China in the first four months (mid-July to mid–November) of the current fiscal year, accounting for 21.75 percent of total imports. India remains Nepal’s largest trading partner with a 55.45 percent share.

Vehicles are among Nepal’s major imports, and the growing attraction for electric vehicles—supplied predominantly from China—has contributed to the rising import share. Customs data show notable growth in imports of electrical equipment, machinery, solar panels, textiles and fertilizers from China.

In FY 2021/22, China’s share in Nepal’s total imports during the same four-month period was just 14.5 percent, with imports amounting to Rs 94.30 billion. In FY 2024/25, imports from China during the same period rose to Rs 103.18 billion, representing 20.09 percent of Nepal’s total imports.

Full-year figures also point to a rising trend. Nepal imported Rs 341.10 billion worth of goods from China in FY 2024/25, making up 18.9 percent of total imports. The previous year, China’s share stood at 18.75 percent, while in FY 2022/23, it was only 12.58 percent. Nepal Rastra Bank data show that before the pandemic, between FY 2016/17 and 2018/19, China’s share consistently remained below 14 percent.

Customs officials attribute the recent jump mainly to the steep rise in EV imports. Tul Bahadur Pande, a customs officer at the Tatopani Customs Office, said EVs being imported from China are significantly more expensive than other goods, increasing China’s overall import share.

From mid-July to mid-November this fiscal year, Nepal imported 3,203 four-wheeler electric vehicles, of which 2,276 came from China. Last fiscal year, Nepal imported 13,578 four-wheeler EVs, 75.2 percent of them from China.

Despite the closures at the northern border points, imports did not decline significantly. The Rasuwa border point, Nepal’s main trade route with China, has remained closed since July 8 after a massive flood in Lhendekhola, a tributary of the Trishuli River. The Tatopani checkpoint also faced repeated disruptions due to landslides and reopened only on September 24, with container movement still below normal, Pande said.

Currently, more than 200 two-wheelers and four-wheelers enter Nepal through Tatopani on two designated days each week, he added. Imports of higher-priced Chinese EVs—some costing up to Rs 30 million—have also contributed to the increase in China’s share of Nepal’s total imports.

China remains Nepal’s second-largest trading partner after India. Imports of electrical equipment, machinery, solar panels, textiles and fertilizers from China have all grown notably in recent years, according to the Department of Customs.