China says Lipulekh dispute is India-Nepal issue, distances itself

China has told Nepal that the Lipulekh issue is a bilateral matter between India and Nepal, distancing itself from the dispute, according to Nepalese media reports on Friday.

Nepal had approached China, asserting that Lipulekh falls within its territory. Nepalese Prime Minister KP Sharma Oli raised the matter with Chinese President Xi Jinping, voicing his opposition to the agreement between India and China to reopen Lipulekh as a border trade route.

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However, President Xi rejected Oli’s concerns, emphasising that the matter is bilateral between India and Nepal. During his visit to China, Prime Minister Oli also held bilateral talks with Russian President Vladimir Putin on the sidelines of the SCO and SCO Plus Summit in Tianjin on September 1, 2025. He concluded his visit by attending a victory parade marking the 80th anniversary of the end of World War II.

Prime Minister Oli’s objections were explicitly conveyed to President Xi, Foreign Secretary Amrit Bahadur Rai confirmed. As per Nepal’s stance, the dispute traces back to the Sugauli Treaty of 1816, which states that all territories east of the Mahakali River belong to Nepal. The disagreement over Lipulekh arises from differing interpretations of the river’s origin: historical maps identify Limpiyadhura as the source, while India recognises a smaller stream at Kalapani, further downstream.

In response, President Xi told Oli that China does not object to Nepal’s claim over Lipulekh but urged Nepal to resolve the matter directly with India, Nepalese media reported.

On August 20, 2025, India dismissed Nepal’s objections to reopening India-China border trade via the Lipulekh Pass in Uttarakhand, stating that Kathmandu’s claims lacked support from “historical facts.”