A recent research report has revealed startling developments along the China-Bhutan border, raising serious concerns over the sovereignty of the small Himalayan kingdom. According to a report by ‘Turquoise Roof,’ a network of Tibetan analysts, China has built 22 villages and settlements within Bhutan’s traditionally recognized borders.
This includes 19 villages and three smaller settlements, with three of these villages slated to be upgraded to towns. Notably, seven of these cross-border constructions have emerged since early 2023, signaling an acceleration in China’s territorial expansion.
The findings illustrate an alarming trend that has left Bhutan grappling with an increasing Chinese presence in areas previously uninhabited and remote. With approximately 7,000 people—including officials, construction workers, border police, and military personnel—being relocated into these high-altitude regions, China’s intent appears to be consolidating its hold on strategic territories, reshaping the region’s geopolitical landscape.
China’s territorial ambitions in Bhutan are not new. The construction of villages within Bhutan’s borders began as early as 2016 when China began building a settlement in a remote part of the Himalayas widely recognized as Bhutanese territory. This development remained undiscovered by foreign observers and governments for five years, by which time China had already built two additional villages.
Bhutan and China share a 477-kilometer border inherited by China after its annexation of Tibet in 1951. Since then, China and Bhutan have never demarcated their shared border, leaving Bhutan as one of only two countries (the other being India) among China’s 14 neighbors that lack an agreed-upon border. This ongoing ambiguity has allowed China to steadily expand its presence into Bhutanese territory.
The construction of 22 villages by China has created a delicate and dangerous situation for Bhutan, a small nation with limited military capabilities. Bhutan’s military force comprises roughly 8,000 personnel, primarily for symbolic and defensive purposes, making it difficult for the country to resist China’s creeping annexation.
Satellite imagery and research conducted by the ‘Turquoise Roof’ analysts show that China has constructed 752 residential blocks in these disputed areas, housing an estimated 2,284 family-sized units. These newly built villages and settlements are situated in remote, high-altitude locations, with an average elevation of 3,832 meters above sea level. Ten of these villages are perched at altitudes above 4,000 meters, with Menchuma, the highest settlement, sitting at a precarious 4,670 meters.
These villages are strategically connected by roads leading to Chinese towns, while remaining isolated from Bhutanese urban centers. The placement of these villages reflects China’s broader strategy of establishing control over critical geographic areas. Among the most significant of these is the Doklam plateau, an area that holds immense strategic value not only for Bhutan but also for India.
A key region targeted by China’s construction efforts is western Bhutan, which includes the disputed Doklam plateau. This region has long been a point of contention between China, Bhutan, and India. The Doklam plateau lies at the trijunction where the borders of these three countries converge. China has long sought control of the plateau, which would provide a strategic vantage point over the Siliguri Corridor, a narrow strip of land that connects mainland India to its northeastern states.
India and Bhutan recognize Doklam as Bhutanese territory, while China claims it as part of its Donglang region. In 2017, this dispute led to a tense two-month military standoff between Indian and Chinese troops after China attempted to extend a road in the region. While both sides withdrew their troops after the standoff, China has maintained control over much of the Doklam plateau, even building a village named Pangda there.
China’s interest in Doklam is primarily driven by its strategic importance. Control of the southern ridge at Doklam would give China significant leverage over India, particularly in the event of future conflicts. This ongoing territorial dispute remains a major flashpoint in the broader China-India rivalry.
China’s construction activities in northeastern Bhutan, where it has built 14 of its cross-border villages, appear to have a different strategic objective. These areas, known as Beyul Khenpajong, including the Pagsamlung and Jakarlung valleys, hold little military or strategic value. Yet, China has aggressively pursued annexation in these regions since the 1980s, despite having marked them as Bhutanese on official maps until at least the early 1990s.
The likely motive behind China’s focus on northeastern Bhutan is to use these territories as bargaining chips in exchange for control over the more strategically important regions in western Bhutan, particularly the Doklam plateau. This strategy became evident in 1990, when China proposed a “package deal” to Bhutan, offering to drop its claims to the northeastern areas in exchange for Bhutan ceding territory in the west.
However, Bhutan cannot transfer the Doklam area to China without India’s consent due to Indo-Bhutanese treaties that require Bhutan to consider India’s security concerns. As a result, Bhutan has repeatedly postponed agreeing to China’s proposed territorial exchange, much to China’s frustration.
According to the ‘Turquoise Roof’ report, China’s expansion into Bhutanese territory has followed a systematic six-stage strategy:
- Herders Displacement: In the early 1990s, China began deploying Tibetan herders into disputed areas, leading to the displacement of Bhutanese pastoralists.
- Shelters and Huts: Tibetan herders established temporary shelters and huts in these contested regions.
- Military Foot Patrols: Chinese military foot patrols were deployed to support the herders and assert China’s presence.
- Military Outposts: Improvised military outposts were established, which were later upgraded to permanent facilities.
- Road Construction: Starting around 2004, roads were built to connect these military outposts to towns within Tibet.
- Village Construction: By 2016, China began constructing villages in these disputed territories, marking a new phase of annexation.
This strategy highlights China’s long-term approach to territorial expansion, gradually converting disputed areas into de facto Chinese territory.
Since early 2023, China has accelerated its village construction, with seven new villages built in northeastern Bhutan alone. This surge suggests that China is moving beyond the original “package deal” proposal, as it now seems unlikely that China will return these territories, which encompass around 80% of the disputed areas it has annexed.
“China is expected to argue that it is not obligated to return these areas because Bhutan, constrained by India’s security concerns, is unlikely to yield the Doklam region,” the report states.
Bhutan may be left with little choice but to concede non-Doklam areas along its western border to China. In return, China is likely to relinquish claims to only those areas it has not yet developed with villages, totaling approximately 353 square kilometers in the west and about 78 square kilometers in the northeast.
India has historically acted as Bhutan’s security guarantor, especially regarding the strategic Doklam plateau. However, since the 2017 Doklam standoff, there has been little indication of India’s involvement in Bhutan’s broader border dispute with China. India’s primary concern remains Doklam, and beyond that, its interest in Bhutan’s border issues appears limited.
The international community, too, has largely remained silent on China’s cross-border village strategy, even as it sets a worrying precedent for how major powers can exploit territorial claims at the expense of smaller states. The situation echoes similar tensions involving China in regions like Taiwan and the South China Sea, where China has used its influence and infrastructure projects to assert control over contested areas.
Bhutan’s struggle against China’s encroachment underscores the challenges faced by smaller nations when confronting a powerful neighbor with expansionist ambitions. China’s cross-border village strategy not only threatens Bhutan’s territorial integrity but also raises broader concerns about the international order and the future of territorial sovereignty.
As China continues to build and expand its influence in disputed regions, Bhutan finds itself increasingly vulnerable, caught between the interests of its powerful neighbors, China and India. The need for stronger international diplomatic support and a framework to protect the sovereignty of small nations has never been more urgent.