Rasuwagadhi-Kerung Border : Northern Trade Lifeline and the Urgent Need for Resilient Infrastructure

Officially inaugurated in December 2014 and upgraded to an international checkpoint in 2017, this border facilitates cross-border travel for individuals possessing valid passports and visas. After three years of COVID-related restrictions, China fully reopened the Rasuwagadhi–Kerung border in April 2023. By mid-2025, it had transformed into a vital trade artery, with 30–40 fully loaded cargo containers entering Nepal daily through the Kerung checkpoint.

The Friendship Bridge (Miteri Bridge) in Rasuwagadhi, one of the few permanent road connections between Nepal and China, was destroyed by a massive flood in the Bhotekoshi River caused by monsoon rains on July 8, 2025. The Rasuwa Customs Office in Timure, one of only 28–29 constantly running customs offices in Nepal, was impacted by the disaster, which happened 120 km north of Kathmandu.

A recent flood near the Rasuwagadhi–Kerung boundary was probably caused by the abrupt drainage of a supraglacial lake, according to a preliminary scientific examination by Dr. Nitesh Khadka and Dr. Guoxiong Cheng of the Chinese Academy of Sciences. Analysis of satellite imagery revealed a sharp decline in water volume from a glacier coated in debris north of the Nepal–China border, supporting this hypothesis. 
The researchers noted that the creation and instability of these supraglacial lakes have risen in the Himalayan region due to rising temperatures that are being driven by ongoing climate change. Their unplanned eruptions, referred to as Glacial Lake Outburst Floods (GLOFs), pose major risks to infrastructure and communities downstream.

Photo: Prime Minister’s Secretariat

 

According to Nepal police , Hundreds of electric vehicles, products, and many container trucks that were parked for customs inspection were washed away. There was also significant damage to the dry port that was being built. Sadly, 19 people—including 13 Nepali nationals and 6 Chinese laborers—went missing and at least 9 people died. Fifty-five people, including 25 Chinese and Indian nationalities, were rescued, including by army helicopters.

In addition to interfering with power generation, the flood damaged several hydroelectric projects along the Trishuli River, underscoring the broader effects of climate-related disasters on Nepal's infrastructure. 

The Department of Customs reports that Nepal had a huge trade deficit of Rs. 296.18 billion in FY 2023–2024, with imports from China totaling Rs. 298.77 billion and exports of only Rs. 2.58 billion.

In FY 2080/81 BS, Nepal imported commodities valued at Rs. 65.22 billion from the Rasuwagadhi checkpoint alone, accounting for around 4% of the country's total yearly imports. Cars, gadgets, clothing, shoes, apples, garlic, and raw materials for production were among the items (New Business Age, 2024).

Less than 1% of Nepal's total exports to China came from Rasuwagadhi, which produced mostly copper kitchenware, noodles, carpets, and textiles, with a total value of just Rs. 1.96 billion. 

Rasuwa Customs collected taxes, fines, and VAT in FY 2023–2024 and deposited Rs. 20.36 billion into the national treasury.

Rasuwagadhi is now the main entry point for electric vehicle imports into Nepal. 7,377 EVs (cars, buses, vans, and tricycles) totaling Rs. 19.57 billion were imported at the checkpoint in FY 2080/81 BS alone (Department of Customs).

Rasuwa Customs saw a 54.6% increase in imports from Rs. 35.00 billion to Rs. 54.11 billion, mostly as a result of rising EV imports. As a result of Nepal's policy change toward clean mobility, 6,883 electric vehicles entered the country through this route during the same fiscal period (NEPSE Trading, 2024). 

But the recent flood has brought to light the dangers of relying too heavily on one trade route, particularly for important and expensive imports like electric vehicles.

Nepal must immediately improve the resilience of its northern commercial infrastructure and fortify cross-border coordination with China in light of the July 2025 flood tragedy at the Rasuwagadhi–Kerung border. By creating alternate road and air freight channels, Nepal can lessen its over-reliance on Rasuwa and diversify its trade routes as climate-related calamities like glacial lake outburst floods (GLOFs) become more common.

Climate-resilient engineering should be used to rebuild the Friendship Bridge and the surrounding infrastructure. Well-planned vehicle holding zones at safer altitudes are necessary since cars are already frequently parked along riverbanks without adequate yard management, increasing the danger of damage during floods and landslides. In order to provide prompt flood warnings and reaction, real-time information exchange between China and Nepal is also essential.

Additionally, better drainage and elevation systems are needed to speed up the Rasuwagadhi dry port's construction. To securely manage the growing number of electric car imports, the Pasang Lhamu Highway (H12), which runs through Galchi, Dhunche, Syabrubesi, and Timure, must be improved. Poor road conditions along this route not only increase the risk of accidents but also raise transportation costs for traders—making road improvement an essential priority.

Nepal's most important trade route with China is still the Rasuwagadhi–Kerung corridor, particularly for vital industries like electric mobility. However, the flood in July 2025 serves as a sobering reminder that infrastructure needs to be robust, regardless of how important it is. Nepal can safeguard this crucial artery and guarantee its long-term viability with the correct investment, changes in legislation, and international collaboration.