Nepal's Prime Minister KP Sharma Oli has voiced strong opposition to the India-China agreement to reopen trade through the Lipulekh Pass, a territory Nepal claims as its own. This opposition was conveyed directly to Chinese President Xi Jinping during a bilateral meeting in Tianjin, China, on Saturday, August 30, 2025, ahead of the Shanghai Cooperation Organization (SCO) Summit.
Oli's objection centers on Nepal's assertion that Lipulekh is an "inseparable part of sovereign Nepal". He stated that the territory belongs to Nepal, and the government has officially registered strong objections against the India-China agreement. Nepal's claim is based on the 1816 Treaty of Sugauli, which defines the Kali River as its western boundary with British India. Kathmandu argues that the Kali River originates from Limpiyadhura, thus placing Lipulekh, Kalapani, and Limpiyadhura within its territory. Nepal has incorporated this claim into its constitution, formalizing its territorial stance.
India, however, rejects Nepal's territorial claims, calling them "unjustified, untenable, and not supported by historical facts". India asserts that the Kali River originates near Kalapani, placing the territory under Indian control. India has also stated that border trade between India and China through the Lipulekh Pass has been ongoing for decades, commencing in 1954.
During the meeting with Xi Jinping, Oli referenced the recent understanding between India and China on border trade through the Lipulekh Pass. He emphasized that Nepal has consistently urged India not to carry out any activities such as road construction or border trade in the area and has also communicated to China that the area is part of Nepali territory. Oli requested China's support in the matter, expressing confidence that China would understand Nepal's position. According to Foreign Secretary Amrit Bahadur Rai, Xi Jinping did not express disagreement with Nepal's stance but suggested that the issue should be resolved through dialogue between Nepal and India. China's official statement, however, made no reference to the Lipulekh issue.
Despite the disagreement over Lipulekh, both leaders affirmed their commitment to strengthening bilateral ties and cooperation across various sectors. Discussions included the progress of projects under the Belt and Road Initiative (BRI) and their role in Nepal's socioeconomic development. Oli expressed hope for faster implementation of already agreed projects and sought support in areas such as fertilizer, petroleum exploration, human resource development, climate resilience, and people-to-people ties. China reiterated its commitment to helping transform landlocked Nepal into a land-linked country and expressed willingness to support Nepal in enhancing the quality and commercial agricultural production to boost exports.
Oli also requested President Xi to support Nepal's membership aspiration in the SCO. Nepal firmly adheres to the one-China principle, resolutely opposes "Taiwan independence," and will not allow any force to use Nepali territory to harm China's interests.
