Significance
In the 1990s, Beijing offered a ‘package solution’ whereby Bhutan would relinquish control of land abutting certain areas of the Bhutan-China border in return for territory in other parts. Bhutan and its key partner, India, rejected it, but the kingdom now says it wants discussion of all disputed areas.
Impacts
India and China will ramp up military infrastructure along their mutual border.
China will step up economic overtures to India’s South Asian partners as a means of undercutting Delhi’s regional influence.
Bhutan’s government will face growing pressure domestically to pursue an independent foreign policy, rather than one dominated by Delhi.