Nepal PM Oli Raises Lipulekh Dispute in Talks with Chinese President Xi Jinping Ahead of SCO Summit

Kathmandu, Aug 2025 : Nepal’s Prime Minister KP Sharma Oli held bilateral talks with Chinese President Xi Jinping in Tianjin on Saturday, just hours after arriving for the 25th Shanghai Cooperation Organisation (SCO) summit and the SCO Plus meeting. The talks came against the backdrop of rising concerns in Kathmandu over the Lipulekh issue, a longstanding territorial dispute involving Nepal, India, and China.

According to Foreign Secretary Amrit Bahadur Rai, Prime Minister Oli directly raised Nepal’s objection to the use of Lipulekh during his meeting with President Xi. In a statement released by the Prime Minister’s private secretariat, Rai said, “The Prime Minister raised the issue of Lipulekh. He reminded that the 1816 Sugauli Treaty had clearly demarcated Nepali territories, under which all areas east of the Mahakali River belong to Nepal. Lipulekh, which is part of that territory, is currently being used for trade. Therefore, there should not have been an agreement regarding its use without Nepal’s consent. Nepal has strong objections, and this was communicated clearly.”

The comments referred to the recent India-China agreement to reopen trade through Lipulekh, located in Nepal’s Darchula district. Kathmandu has repeatedly asserted that any decision involving Lipulekh must include Nepal, as the territory lies within its borders.

Oli’s remarks signal Nepal’s firm stance on safeguarding its territorial integrity, particularly at a time when regional powers are advancing trade and connectivity agreements in sensitive border areas. The issue has long been a point of contention in Nepal’s foreign policy, often straining relations with both New Delhi and Beijing.

With the SCO summit offering a high-level diplomatic platform, Oli’s intervention highlights Nepal’s determination to keep its territorial claims on the international agenda while balancing relations with its two powerful neighbors.