Rasuwagadhi is Nepal's only operational trade point with China. But road to this bordering town is too narrow for big trucks, tankers and bullets. The single-lane road passes through a 15-kilometer stretch which sees recurring landslides throughout the year. Rasuwagadhi is slowly emerging as one of the key border points for economic engagement with China with the necessary infrastructure being built on both sides of the border to facilitate trade. Besides an increase in trade through the border point, there has been a rise in the number of Chinese tourists arriving over this route. Tatopani in Sindhupalchok is the main trade route between Nepal and China, but Rasuwagadhi is likely to emerge as an alternative route for trade with China because of the infrastructure being built on both sides of border and the possibility of the border point being connected with Chinese railways. The importance of the Rasuwagadhi customs point as an alternative gateway was felt mainly when the Araniko Highway was cut off due to landslides and flooding of the Sunkoshi River on August 2, 2014. Following the disaster, a large number of containers filled with imported goods were stranded on the Araniko Highway, bringing the trade with China almost to a standstill. At that time, the Chinese government was constructing a 22-km road connecting Kyirong and Khambatar which lies across the border from Rasuwagadhi. Following the obstruction on the Araniko Highway, the Commerce Ministry requested the Chinese government on behalf of Nepali traders that goods be allowed to be imported through this customs point.
