It was initially fought between Gorkhas and Tibetan armies in 1788 over a trade dispute related to a long-standing problem of low-quality coins manufactured by Nepal for Tibet.

The Nepalese Army under Bahadur Shah plundered Tibet which was a Qing protectorate and Tibetans signed the Treaty of Kerung paying annual tribute to Nepal.

When Prithvi Narayan Shah of the Gorkha Kingdom launched an economic blockade on the Kathmandu Valley during his unification campaign, Jaya Prakash Malla of Kathmandu faced an economic crisis which he tried to alleviate by minting low quality coins mixed with copper.

Prithvi Narayan Shah was not willing to bear such a huge loss in a matter for which he was not responsible, but was willing to vouch for the purity of the newly minted coins.

The case remained unresolved due to his demise in 1775, and the problem was inherited by successive rulers of Nepal.

Another sore point in the Nepal-Tibet relationship was Nepal's decision to provide refuge to the 10th Shamarpa Lama, Mipam Chödrup Gyamtso, and his fourteen Tibetan followers.

The Nepalese found the quarrel over coinage a good pretext to expand their kingdom and to raid the rich monasteries in Tibet.

The Gorkha troops entered Tibet through Kuti (Nyalam Town) and reached as far as Tashilhunpo (about 410 km.

When the Qianlong Emperor of China heard the news of the invasion of Tibet by Nepal, he sent a large troop of the Chinese army under the command of General Chanchu.

In the talks Tibet was held responsible for the quarrel and were required to give compensation to Nepal for the losses incurred in the war.

The Qing Empire asked Nepal to return the property to Tibet which was looted at Digarcha.

Heavy damage was inflicted on both sides and the Chinese army pushed the Gurkhas back to the inner hills close to the Nepali capital.

The anxious Bahadur Shah asked for ten artillery guns from the East India Company.

Captain William Kirkpatrick arrived in Kathmandu,[5] but he informed the Nepalese the conditions of business treaty which he required the signing of before delivery of the weapons.

Wary of what signing the treaty would entail, the deal fell through and the military situation became critical for Bahadur Shah.

A stalemate ensued, and with their resources low and a looming uncertainty regarding how long they would be able to hold on in addition to the need to continue their expansion drive on the western frontier, the Gorkhalis signed a treaty on terms dictated by the Qing that required, among other obligations, Nepal to send tributes to the Qing emperor every five years.

[6] There were serious fightings around all the three forts and heavy repulse from Nepalese forces compelled Chinese troops to retreat to Betrawati river.

[6] The action of the Chinese General demotivated the troops and increase rapid desertion and retreat through other routes.

[6] Many Chinese troops died falling from hills into river and others from the bullets and arrows from Nepalese side.

[1] The Chinese General Tung Thyang lost all hopes of attacking the Nepalese forces and decided to conclude a treaty with Nepal through his letter.

[1] The royal order issued by King Rana Bahadur Shah to Kaji Damodar Pande on Thursday, Bhadra Sudi 13, 1849 (September 1792) is detailed below: From King Rana Bahadur Shah, To Damodar Pande.

[7]The Qing general Fuk'anggan then sent a proposal to the Government of Nepal for ratifying a peace treaty.

The Qing were not particularly interested in ruling Nepal; their war was primarily aimed at consolidating their control of Tibet which, in turn, was related to military strategy throughout Central Asia.

[10] Later Prime Minister Bhimsen Thapa expressed his attitude on the Sino-Nepalese War in a letter to King Girvan Yuddha Bikram Shah.

The Chinese once made war upon us, but were reduced to seek peace.Paintings and engravings from a series commissioned by the Qianlong emperor and depicting the "Gurkha Campaign":