Growing web of Chinese criminal activity in Nepal raises red flags

KATHMANDU. On 23 July 2025, two Chinese nationals were arrested in Thamel with two kilograms of gold and Rs. 2.4 million in cash with no verifiable source. They were apprehended while conducting business from a Chinese-run hotel in the area.

Just six days earlier, a Chinese national was arrested in Sinamangal, Kathmandu, with electronic equipment valued at Rs. 22 million, including laptop batteries, CCTV cameras, and laptop parts. He had set up a warehouse there to sell these tax-evaded goods.

Just six days earlier, a Chinese national was arrested in Sinamangal, Kathmandu, with electronic equipment valued at Rs. 22 million,  including laptop batteries, CCTV cameras, and laptop parts. He had set up a warehouse there to sell these tax-evaded goods.

These are just a few examples illustrating the rising involvement of Chinese nationals in criminal activity across Nepal. Two years ago, seven Chinese citizens were arrested at Tribhuvan International Airport for smuggling 100 kilograms of gold.

The network extends beyond the capital. 

On 29 October 2021, two Chinese citizens were arrested in Sankhuwasabha for producing fake rudraksha beads. On 31 March 2024, three more were arrested in Parsa.

In Birgunj Metropolitan City, Chinese individuals ran an online scam from a rented house. Police seized 120 computers, 35 mobile phones, and 13 Indian SIM cards.

According to Nepal Police statistics, the number of criminal cases involving Chinese nationals has grown year after year:

Nepali Year	Number of Arrests
2077/78	16
2078/79	13
2079/80	43
2080/81	22
2081/82	28

Police reports suggest Chinese nationals are increasingly using technology in crimes, including illegal currency trading, gold smuggling, rape, wildlife product trafficking, human trafficking, gambling, and drug-related offenses.

Most Chinese residents in Nepal — tourists, businesspeople, and laborers — are law-abiding. Yet the criminal actions of a few have exposed significant gaps in Nepal’s regulatory, immigration, and security systems.

On 27 February 2023, a Chinese national was arrested in Lalitpur for sexually exploiting minors under the guise of running a company, luring them to dance bars with financial incentives. Police rescued two minors from his apartment and four others from Chinese-operated dance bars in Thamel.

In December 2019, police arrested 122 Chinese nationals in Kathmandu over various criminal charges. Rather than prosecuting them, Nepal handed them over to China. Beijing had even sent two planes to retrieve them.

Former AIG Tek Prasad Rai says organized criminal activity involving Chinese nationals began around a decade ago but has surged in the past five years. He attributes this rise to the ease with which Chinese nationals receive visas and enter Nepal with minimal scrutiny, making the country a preferred destination for illegal activity.

Anjan Neupane, an official at Tribhuvan Airport’s immigration office, confirmed that Chinese nationals receive visas on arrival and can stay up to 150 days annually without paying visa fees.

Rai observes that as Chinese communities have expanded globally, crime has simultaneously globalized. 

“Nepal is a victim of that globalized crime,” he told NepalViews. 

According to him, Nepal’s weak security surveillance and soft diplomatic stance towards China enable these trends.

Prosecution of Chinese nationals in Nepal is rare. Despite global challenges in tackling transnational criminal networks, Nepal’s situation underscores deep systemic issues. 

“Our security monitoring is weak, and our approach to Chinese nationals is lenient,” Rai added. “That’s why Chinese criminals find it relatively easy to operate here.”

Experts also highlight that Nepal’s diplomatic and strategic ties with China influence policy. Chinese tourists enjoy relaxed visa regulations and longer permissible stays compared to other foreign visitors, making access easier.

Former security officials say that the Chinese embassy in Kathmandu has sometimes intervened in legal cases involving Chinese suspects, seeking their release. While this may reflect Nepal’s efforts to maintain goodwill with China, critics argue that some law and order principles are being compromised.

Rai contends that Chinese criminals often come to Nepal not just on visitor or business visas but under China-funded employment projects. He claims many are involved in criminal activity in China and then sent abroad for work — assigned to “labor camps” rather than prison.

Moreover, he says, Chinese embassy pressure frequently follows arrests of Chinese nationals in Nepal: “If someone is arrested, the embassy calls from the top, leading to their release.”

When Nepal deported the 122 Chinese nationals in December 2019, it had raised legal and ethical questions among observers. 

Just after they were arrested, China’s Foreign Ministry asserted: “China is prepared to strengthen cooperation in all areas, including law enforcement, to jointly fight cross-border crime and promote people-to-people exchanges.” China also claimed the arrests were conducted at its initiative.

None of those deported were prosecuted or investigated in Nepal.

Those deported were reportedly involved in IT-related crimes—online gaming scams, betting, fraud, hacking, Rai said. 

Police had previously noted those living in rental houses on visitor visas had violated immigration laws only, and were fined Rs. 1,000 each.

During Chinese President Xi Jinping’s October 2019 visit, Nepal and China signed a Mutual Legal Assistance Treaty in Criminal Matters. Although China proposed an Extradition Treaty as well, Nepal did not sign it, fearing criticism from human rights groups and the international community and concerns of misuse against Tibetan refugees or political dissidents.

Another former AIG, who spoke on the condition of anonymity, decried the lack of coordination between Nepal’s investigative agencies and the Chinese embassy. 

“We don’t follow up or coordinate when Chinese suspects are identified. This coordination — if institutionalized — could filter problematic arrivals at immigration,” he said. “Right now, there’s only superficial chit-chat between the agencies and the embassy. That’s insufficient for crime control.”

Despite frequent calls for international cooperation and systemic reform, implementation remains limited.

According to former DIG Hemant Malla, Chinese nationals were initially involved in wildlife product smuggling — such as animal parts and red sandalwood. 

“Now, crimes linked to gold and technology have increased. We see a rise in IT-related crimes, along with human smuggling and drug offenses,” he said.