Nepal’s Trade Route Vulnerability Exposed by Devastating Floods
Floods destroy Nepal's key trade route with China, exposing risks in its efforts to reduce India dependence.
POLICY WIRE — Kathmandu, Nepal — A catastrophic flood has devastated Nepal’s primary overland trade route with China, underscoring the country’s ongoing challenges in reducing its reliance on India for economic access.
The disaster, triggered by a glacier collapse and bedrock failure, struck the Bhote Koshi-Trishuli river system in north-central Nepal on August 26. As of September 9, the death toll reached 1,357, with over 5,300 people still missing. Critical infrastructure along the trade corridor was destroyed, including roads, bridges, and the Rasuwagadhi-Gyirong border crossing, which handles nearly 11% of Nepal’s imports from China.
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Importers like Bhagwan Thapa of Musa Logistics reported severe losses, with many trucks and goods lost during the flood. The destruction has disrupted trade in Chinese garments, electronics, and electric vehicles, forcing businesses to reroute cargo through the underdeveloped Korala crossing, which faces extreme altitude and weather challenges. Experts warn that rebuilding efforts could take years due to the region’s vulnerability to natural disasters and climate change.
Reporting by Policy-Wire (PW)
