Explained: China’s ‘package deal’ for Bhutan that worries India

Bhutan’s prime minister clarified on Saturday that his recent remarks about China did not mean that his country had changed its position on its border dispute with Beijing.

A week ago, in an interview with a Belgian newspaper on March 25, Lotay Tshering had said the Chinese had not intruded into Bhutan’s territory, that Thimphu was nearing a border deal with Beijing, and that any resolution to the territorial dispute in Doklam must involve Bhutan, China and India.

His comments sparked speculation that Bhutan was giving in to China’s long-standing package deal proposal in order to settle the border dispute. However, as it was announced that Bhutanese King Jigme Khesar Namgyel Wangchuck would visit India on April 3, Tshering clarified that Thimphu’s position had not changed.

The package deal, which Beijing has pushed since the 1990s, will in theory give China control of disputed areas in Bhutan’s west, where Doklam is located, in return for Bhutan securing its claim areas along the northern border.

The proposal is quite concerning for India given the strategic importance of Doklam, where the Indian military was caught in a protracted standoff with the Chinese in 2017. Bhutan, however, may not give in to Chinese pressure on the deal just yet, strategic experts told...

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