China's Trans-Himalayan Economic Gateway

To build Shigatse free economic and industrial development zone in Xizang-Tibet has been China's long-term strategic decision for flourishing the trans-Himalayan multidimensional development networks with Nepal and beyond. This zone forms an inseparable implementation feature of the BRI, the 21st century signature international development cooperation vehicle of China.  

The zone covers 36.3 square km equal to the old Shigatse town in size. It is divided into western and eastern parts by the local Jiaquhe River. Eastern part includes area of Lhasa-Shigatse passenger railway station and Shigatse new city. Western part consisting of comprehensive industrial area including railway freight station, South Asia logistics zone was started in late mid-2015. The zone construction is to complete in 30 years. Investment on the zone is made by a blending of public and private finances, each sector contributing 30 billion Yuan. 

The key message of the zone is to "harvest regional comparative advantage." Shigatse adjoins 1753 km of China's border with Nepal, India and Bhutan. Once the goods and service products leave the zone after comprehensive smart inspection and approval, they can be directly delivered in the pre-fixed destinations in Nepal, India and or Bhutan. After restoration of freight function, the Zone is linked with the Zhangmu Port with Nepal. 

China's Yadong Port adjoins India and is 500 km away from Calcutta. China plans to link Shigatse with Yadong. This transportation route reduces current sea transportation time by 50 days. Xizang, where, for example, highland quality barley makes up to 60 per cent of its area, can contribute to the food security of the people in South Asia.  

In July 2024, adding significant transportation value to the zone, the Lhasa-Shigatse Expressway was inaugurated. This just completed highway is a crucial segment of the G4218 Ya’an-Yecheng Expressway. It has enhanced connectivity between Lhasa and western Tibet, strengthening the region’s transportation network. The 167-kilometer expressway, designed on first-class highway standards, features four lanes and a design speed of 100 km/h, marking a major advancement in Tibet’s infrastructure development.

The new expressway is set to be a pivotal element in Tibet’s “one circle, two wings” urban development strategy which viably integrates multiple modern transport infrastructure with economic-industrial development. The strategy is expected to facilitate creation of an economic zone around Lhasa, further promoting regional connectivity and economic growth. Additionally, the enhanced transportation links are targeted to improve living standards and boost economic opportunities for communities across western Tibet. 

The upcoming zone under construction in five kilometre south of the urban area of Shigatse intends to attract the people by providing better living incentives. The city set up in 2014 bordering with three neighbouring countries has recently provided a subsidy package to as many as 120,000 people who have chosen to be residents in the zone area. 

Xizang's urban development strategy in Shigatse and Lhasa viably integrates multiple regional modern transport connectivity with economic-industrial development. With this strategy, China expects to facilitate a win-win situation in the trans-Himalayan economic corridor that promotes regional connectivity and economic growth by interlinking them. In all the development and connectivity initiatives, it is heartening to note that Xizang, China practically plans and prioritises the requirements of the local people and community. 

The governance in Nepal would be helping the Nepali people and community greatly if it could visit the integrated development and connectivity processes in Xizang. China has to help Nepal in this process. Xizang has learned very well that only talking of economic development and physical connectivity divorced from each other and in isolation from the requirements of local people and community is not sustainable. Once we are able to appreciate this basic fact, the artificially designed and induced several trap narratives become totally irrelevant. Nepal does have to freely move on only to lose nothing but traps. 

(Dr. Gautam is general secretary of China Study Centre Nepal)