Recent reports suggest a border dispute involving China. Chinese media alleges that China has established a new border village near Bhutan which — contrary to the international outcry — is on Chinese territory. Analysis of images released reveals the village to be situated on land that both countries contest over.
Settlement Details
The village, identified as Pangda, remains fresh in construction. Yadong county administration in Southwest China’s Tibet Autonomous Region confirms that they relocated 27 families — comprising 124 people in September 2020 from Shangdui village voluntarily. It is noteworthy that since 2017, this is the first recorded Chinese settlement presence near the strategically important Doklam region for India. Situated east of the India-Bhutan-China trijunction point on the Doklam plateau, Pangda is the same site where China initiated a 72-day stand-off in 2017 due to road-building plans along its perceived border.
Stance of Bhutan and India
Bhutan has officially rejected any claims implying the presence of a Chinese village within its sovereignty. Conversely, India perceives this development as an attempt by China to unilaterally push the trijunction further. Past records show China consolidating its territorial claims in disputed areas through civil settlements with neighboring countries, as seen on South China Sea islands and Bhutan’s Trashigang district.
Stance of China
China posits that the village resides within China’s territory per their maps. It also accuses India of causing disruptions in China-Bhutan border negotiations and crafting an illusion of China infringing Bhutanese territory.
Indo-Bhutan Relationship
The Indo-Bhutan Treaty of Peace and Friendship of 1949 fosters a peaceful relationship between India and Bhutan, providing free trade, commerce, and equal justice to each other’s citizens. The 2007 redrafted treaty emphasized Bhutan’s sovereignty, abolishing the need for Bhutan to lean on India for foreign policy guidance.
Multilateral Partnership
India and Bhutan share a partnership in multilateral forums like SAARC, BBIN, BIMSTEC, etc.
Hydropower Cooperation
Under the 2006 Agreement on Cooperation in Hydropower, India has vowed to aid Bhutan in developing a minimum of 10,000 MW of hydropower and import surplus electricity from it by 2020.
Trade and Economic Assistance
The India Bhutan Trade and Transit Agreement 1972 governs trade, establishing a free-trade regime between both countries and permits duty-free transit of Bhutanese exports to third countries. India, being a leading development partner of Bhutan, has allocated Rs. 4500 crore to Bhutan’s 12th Five Year Plan (2018-23).
Educational and Cultural Cooperation
India provides many scholarships to Bhutanese students, with a large number studying in India.
Environmental Partnership
In June 2020, an MoU with Bhutan was approved by the Union Cabinet for cooperation in protecting the environment and managing natural resources.
Pandemic Support
India has been closely coordinating with Bhutan during the Covid-19 pandemic, ensuring its inclusion in the containment plans. Also, Bhutan became the second country, after Singapore, to accept India’s RuPay card, increasing the scope of digital transactions.