Wan Wei Ming, 50, allegedly operated the racket under the cover of running his tourism business in Thamel, a commercial neighbourhood in Kathmandu frequented by foreign tourists.
His wife Yang Wei Wing had managed to escape when the police yesterday arrested Manoj Adhikari, the driver of the vehicle carrying gold worth NRs 430 million, the police said.
The gold was smuggled into Nepal from China via the Rasuwagadi-Kerung border checkpoint, north of Kathmandu.
The police succeeded in seizing their car, which was used to transporting the smuggled gold, the police said.
The police is questioning the driver.
Authorities have alerted all police units and the Tribhuvan International Airport in Kathmandu abouth the couple. "We are committed to bringing to book any person directly or indirectly involved in the smuggling," said senior police officer Jaya Bahadur Chand.