Friday, April 17, 2026 06:52 PM

Major Foreign Policy Challenge for Balen Government: Sino_Indian Trade Through Nepalese Territory

By Shashi P.B.B. Malla

The Balen government will hardly have been in office and will be immediately be confronted with a major foreign policy challenge.

How to react to the resumption Sino-Indian bilateral trade through the Nepali border pass of Lipulekh.

In fact, the Nepalese government is clear that Limpiyadhura, Lipulekh, and Kalapani, situated East of the Mahakali River, are inseparable parts of sovereign Nepalese territory.

After all, the Treaty of Segauli had stipulated that the Mahakali River was the border between Nepal and the territory of the East India Company, and that all territory east of the Mahakali was Nepalese.

India is, therefore disputing a basic historical, geographical and legal fact.

The Indian position in this regard has been neither consistent nor clear.

India claims that the bilateral border trade between India and China through Lipulekh pass commenced in 1954 and has been going on for decades.

This does not agree with the facts on the ground.

India and China only agreed to start bilateral trade through Lipulekh only after completing the connecting road – illegally through Nepalese territory.

Indian Army spokesmen have clearly contradicted themselves.

Nepal’s Peaceful Path to Resolve the Dispute

Since both India and China are adamant in resuming/starting bilateral trade, Nepal should explore a novel path to push through its rightful claims.

It should marshal all the evidence and assemble all its experts and make a convincing case at the International Court of Justice.

Nepal is not in a position to force either of its powerful neighbours to accept the Nepalese point of view, the best method to resolve the issue is via international arbitration.

The Balen government has a powerful mandate, but it also has promises to keep.

It should not be bogged down by a foreign policy issue that is not essentially existential.

The writer can be reached at:

shashimalla125@gmail.com

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