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China woos Bhutan with $10 billion in standoff with India

Beijing seen driving wedge in New Delhi-Thimphu alliance

YUJI KURONUMA, Nikkei staff writer

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© AP

NEW DELHI -- Locked in a two-month border standoff with India and tiny Bhutan in the Himalayas, China is offering its little neighbor $10 billion in economic assistance to soften its stance.

Sources say that since the offer, Bhutan has toned down its allegations that China is violating its territorial claims.



The development complicates Bhutan's relations with India, which blocked Chinese troops after Bhutan, -- a long-time security ally of India's -- notified New Delhi that the troops were attempting to construct a road in a part of the Doklam Plateau claimed by both China and Bhutan.

India and China have accused each other of violating the border, with troops from both countries in a face-off since June. Winning over Bhutan would lend more credence to their claims, and it appears Beijing's overture is having the desired effect. Speaking to Indian reporters earlier this month, a Chinese diplomat said that Bhutan clearly acknowledged to Beijing that the area where Indian troops entered is not part of Bhutan.

If the claim is correct, it would signal a weakening of ties between India and Bhutan.

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Although a Bhutanese government official immediately issued a denial to Indian media, New Delhi remains unconvinced. A government source told the Nikkei early this month that China's $10 billion package -- which includes a grant, low-interest loans and direct investment -- is tempting Bhutan.

When External Affairs Minister Sushma Swaraj met with her Bhutanese counterpart, Damcho Dorji, on Aug. 11 on the sidelines of a regional meeting, she told Dorji not to be betrayed by China, asking further that Bhutan retain its alliance with India. Dorji, however, only said that he hoped the standoff would be resolved peacefully and amicably, refraining from any comment that would provoke China.

In June, Bhutan's foreign ministry blasted China, saying that the construction work violates an agreement between the two countries.

The Chinese government-backed tabloid Global Times later ran an editorial referencing Dorji's comment and stating that Bhutan clearly wants to maintain neutral in its criticism of India.

China is wooing Bhutan in order to validate its presence in Doklam. India sent troops only after Bhutan claimed that China had started construction work in Bhutanese territory. Beijing hopes Bhutan will relinquish its claim to the disputed area, thereby obviating the need for Indian troops, which would then be violating Chinese territory.

According to Indian government sources, China and India informally agreed to simultaneously reduce troop deployments in phases, aiming for a complete withdrawal between September and October, or at least by year-end.

Both Indian Prime Minister Narendra Modi and Chinese President Xi Jinping need to save face, hence the simultaneous draw down. But tensions remain, with Chinese and Indian soldiers throwing stones at each other in Kashmir.

According to an Indian government source, there are about 320 Indian and 500 Chinese troops in the area, with the numbers declining. But behind them stand 12,000 Indian soldiers and a 16,000-strong Chinese contingent, raising concerns that if shooting starts, it could quickly grow into a major conflict.
 
Why bother? Just keep the lock-on on taj mahal.

Within 1 mth the indians will buckle if chinese keep threatening taj everyday
 
Wow offer is good, Bhutan and India should accept this. 5-5 both can take.

Why bother? Just keep the lock-on on taj mahal.

Within 1 mth the indians will buckle if chinese keep threatening taj everyday

Sir these Indians are low IQ baniye. They will only buckle if China will offer some hard cash like 10 or 100 billion dollars.
 
Lol. Just one sentence. Bhutanese are not Pakistanis :D

And we will ensure Bhutan doesnt end up like Sri Lanka. Even if they grow slowly they do it steadily. We all saw how Sri Lankan Chinese model of development ended.

And please invest 100B in Nepal too.
 
Hope some neighbor realize what China was doing with them, Friendship is earned not purchased.

BTW Common Chinese citizens are good at Heart, problem seems to be in there communist leaders.
 
BTW Common Chinese citizens are good at Heart, problem seems to be in there communist leaders.

LOL, Chinese citizens are actually more nationalistic than the CPC government. Just find any Chinese national you know, and ask them about China's territorial disputes. If China was a democracy, we would have as many wars as America does in a single decade.

On topic, China did the same thing with Nepal, Bangladesh, Pakistan and Sri Lanka. All of whom (even Pakistan under Ayub Khan) preferred India over China. Today it is the opposite.

China did the same thing in the South China Sea. See how strongly the Philippines opposed China, even winning an international court ruling against us. Now look at what happened, their new President Duterte is pro-China. :P The whole point is to let the other side know they have more options than they think.
 
What happened to all the threats to India? Hehehehe...trying to woo Bhutan...We will remain in Doklam. No matter what. Its about our national security.

Most of those so-called "Chinese threats" don't appear anywhere else apart from the Indian media. :P Or in opinion pieces that have no connection to the official Chinese stance.

What China is trying to achieve is another Nepal, Bangladesh, Pakistan and Sri Lanka. To let Bhutan know that they also have the option of dealing with China, despite having the same geographical disadvantage as Nepal.

And it seems to be working. Bhutan is officially taking a neutral stance right now, which is already a loss for India.
 
Most of those so-called "Chinese threats" don't appear anywhere else apart from the Indian media.

And it seems to be working. Bhutan is officially taking a neutral stance right now, which is already a loss for India.

Already claiming victory.
 
Already claiming victory.

No, I said it SEEMS to be working SO FAR. :P

And yes, the fact that Bhutan is officially staying neutral is a big loss for India. Considering they are bound by a mutual defense treaty.

It's like what happened to the Philippines, they realized their mutual defense treaty with the USA was useless when it came to China (Scarborough shoal incident 2012) which is why they elected Duterte who is pro-China. Bhutan is coming to the same realization, that India cannot protect Bhutan from China during a war, Hell.... India can't even protect themselves from China during a war.

The same story played out with Nepal, Bangladesh, Pakistan and Sri Lanka. They realized India could not offer what China can offer, not just money and security but everything else too.
 
No, I said it SEEMS to be working SO FAR. :P

And yes, the fact that Bhutan is officially staying neutral is a big loss for India. Considering they are bound by a mutual defense treaty.

It's like what happened to the Philippines, they realized their mutual defense treaty with the USA was useless when it came to China (Scarborough shoal 2012) which is why they elected Duterte who is pro-China. Bhutan is coming to the same realization, that India cannot protect Bhutan from China during a war, they couldn't even protect themselves from China during a war.

It is not working so far.

Nepal is visiting and already signed agreements in Indian interest. So Nepal out.

Sri Lanka is also out. Thanks to the Chinese. They are the poster boys Chinese equity swap tactics.

Bangladesh is vary of Chinese more than anyone else.

Afgahanistan is also in indian camp.

Stop posting lies everywhere.

Go ahead, post some obscure blog or chow mein menu and prove me wrong.
 
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