Gyirong Customs, affiliated with Lhasa Customs, in Southwest China's Xizang Autonomous Region, completes the customs clearance supervision of the first batch of imported goods from Nepal after the resumption of two-way trade on December 28, 2022. Photo: Courtesy of Lhasa Customs

The reported imminent opening of the Lizi Port in Southwest China's Xizang Autonomous Region is poised to give bilateral economic and trade exchanges between China and Nepal a major boost, experts said on Sunday.

"The Nechung (Mustang)-Lizi border is being opened in a full-fledged manner for the first time," the Kathmandu Post reported on Sunday, citing Janak Raj Pant, the chief district officer of Mustang.

An inauguration event is scheduled to be held on Monday and passes have been distributed to Nepalis willing to travel across the Chinese border, the report said.

Situated across from Nepal's Mustang District, the Lizi Port has favorable conditions as the terrain is relatively flat in the area and Mustang is close to the economic core of Nepal. The opening of the port is highly advantageous for both countries in strengthening economic and trade ties, Liu Zongyi, secretary-general of the Research Center for China-South Asia Cooperation at the Shanghai Institutes for International Studies, told the Global Times on Sunday.

The port has evolved from a traditional cross-border trade point between China and Nepal, located in Xizang's Xigaze city. It stands as the traditional trade gateway from the Xizang region to Nepal, historically serving as a significant hub for the exchange of salt and grain between China and Nepal, Liu said.

With an investment of 399 million yuan ($54.74 million), the construction of the port included 23 projects, such as a joint inspection building and cargo inspection channels. The port passed inspections by the Ministry of Foreign Affairs, the General Administration of Customs and other relevant departments on September 19, the Xizang local government revealed on its website.

It is also expected to contribute to the broader efforts of Xizang in opening up to the global market, Liu said.

In line with China's promotion of the Belt and Road Initiative, the Xizang region has ramped up efforts to transform itself into a crucial gateway to South Asia, Liu said, noting that strengthening construction of the ports is one of the main steps.

In recent years, Xizang has accelerated the pace of reform and opening-up, intensified cooperation with neighboring countries, comprehensively expanded its opening to the outside world and achieved notable results, said Yang Lahong, deputy director of the Foreign Affairs Office of Xizang Autonomous Region, at a press conference in October.

For instance, the establishment of the Gyirong cross-border economic cooperation zone was approved in March 2022, making Gyirong the 18th of its kind in China and the first in Tibet. 

In May 2022, the Lhasa comprehensive bonded zone passed acceptance review, becoming the first zone of its kind in the region.

In the first three quarters of 2023, the Xizang region's total trade reached 7.65 billion yuan, up 130 percent year-on-year and securing the top position nationwide in terms of the foreign trade growth rate, according to media reports.