Woolen Carpet Exports to China Fall 43.7% Despite Strong Global Demand

Nepal’s woolen carpet exports to China suffered a steep decline in 2025/26, dropping by 43.7% compared to the previous year, according to NRB trade data. Despite strong global demand for Nepali woolen carpets—particularly in Europe and North America—sales to the Chinese market have sharply contracted.

In 2024/25, Nepal had exported Rs. 717 million worth of carpets to China, but this figure fell to just Rs. 10.2 million in a single month of 2025/26, highlighting a dramatic collapse in demand. Analysts attribute this fall to logistics disruptions at Rasuwa and Tatopani customs, increasing non-tariff barriers, and shifting consumer preferences in China toward cheaper machine-made alternatives.

This decline is alarming as woolen carpets are one of Nepal’s traditional export strengths, providing employment to thousands of artisans and earning valuable foreign currency. While global demand remains stable, the drop in Chinese demand indicates the need for market diversification, trade negotiations, and stronger branding to regain competitiveness.