Zhangmu, also known as Khasa, lies on a mountainside 10km (6 miles) inland from the Friendship Bridge that spans the Bhotekoshi (the Sun Koshi) River. This small town has become a major trading post between Tibet and Nepal. The subtropical climate endows the small town with warm, humid weather and beautiful scenery throughout the year.

The town is built along a winding road that is lined with private homes, shops, restaurants and government buildings.

The booming border trade attracts merchants from inland China, Tibet and Nepal. Nepalese merchants export rice, flour, pepper, vegetables and perfumes while Chinese merchants sell wool, tea, salt and Tibetan medicine. There are also restaurants run by the Nepalese serving traditional dishes, instant noodles and beer produced in Nepal.A free trade market formed spontaneously near the Friendship Bridge about 8 years ago, which is still developing today.

According to an agreement between the Chinese and Nepalese governments, people living within 30 kilometres (18 miles) of the border may cross the border freely. Every day, hundreds of Chinese and Nepalese merchants conduct business under this agreement. Local Sherpas lease their houses to the merchants thus sharing in the profit of the border trade. Zhangmu is going to undergo major construction to meet the demands of the booming tourism and border trade.

Tips:
1. Transportation:  From Lhasa there is one public bus to Zhangmu every Friday. It takes about 14 hours, costs around 260RMB. But for foreigners you need get a travel permit first, it seems very complecated. Most of tourists make a landcruiser trip to Zhangmu via Everest Base Camp.

Take a taxi in Zhangmu town, it costs 10RMB each time.

2. Money change:  Money changers deal openly in front of Zhang Hotel and change any combination of Chinese yuan, US dollars or Nepali rupees at better rates than on the Napali side.

3. Chinese immigration:  Chinese immigartion is open from 9:30am to 6:30pm, sometimes closed at noon time from 12:00 to 2:30pm. You need to fill in an exit form and health declaration, if you go with a group to Nepal, our guide will take it for you.

From customs to Friendship Bridge, 8km, take a car or minivan for half an hour, costs 10RMB. There are so many minivans waiting for customers.

At the Friendship Bridge you need to show your passport again to the office.