Nepal can benefit from the booming economy of Xizang Autonomous Region in China as it achieved the highest GDP growth rate in the country at 9.5% last year.
Xizang’s strong economic growth, especially in unique products like highland barley and yaks, presents potential trade opportunities for Nepal. Additionally, Xizang is looking to expand border trade with Nepal, its largest trading partner.
The ongoing development of a China-Nepal industrial park and the Gyirong border economic cooperation zone are positive signs for Nepal’s businesses. Last year, travel agencies in Xizang organized 23 outbound tourist groups to Nepal, according to a report by media outlet chinanews.com.
However, Xizang’s relatively underdeveloped infrastructure, particularly in Ali prefecture, “a key area in China’s opening-up to South Asia,” could limit these opportunities. Nepal can partner with China to improve cross-border transportation and energy access to unlock the full potential of trade between the two countries.