China using LAC disengagement to reset India ties, says report

China probably seeks to capitalise from deescalating tensions along the Line of Actual Control (LAC) with India to stabilise bilateral relations and prevent the deepening of US-India ties, according to a report by the US Department of War. In its annual report to Congress on Tuesday on ‘Military and Security Developments Involving the People’s Republic of China 2025’, the department said that in October 2024, Indian leadership announced an agreement with China.

The agreement was to disengage from remaining standoff sites along the Line of Actual Control (LAC), two days before a meeting between Chinese President Xi Jinping and Prime Minister Narendra Modi on the sidelines of the BRICS Summit. The Xi-Modi meeting marked the onset of monthly high-level engagements between the two countries, where parties discussed border management and next steps for the bilateral relationship, including direct flights, visa facilitation, and the exchange of academics and journalists, it said.

“China probably seeks to capitalise on decreased tension along the LAC to stabilise bilateral relations and prevent the deepening of US-India ties; however, India probably remains sceptical of China’s actions and motives. Continued mutual distrust and other irritants almost certainly limit the bilateral relationship,” the report said. In the last few months, India and China have initiated a series of measures to normalise their relations after ending the over four-year military face-off along the LAC in eastern Ladakh in October last year.

In July, India resumed granting tourist visas for Chinese nationals. India and China have, in recent months, agreed on several people-centric steps to reset their ties. These include agreement to resume Kailash Manasarovar Yatra, resumption of direct flights, commemoration of 75th anniversary of diplomatic relations and visa facilitation. The direct flights between the two countries resumed in October.

In August, Prime Minister Modi and President Xi agreed to deepen bilateral ties to combat pressing challenges and work towards a “fair” solution to the festering border issue. According to the Department of War report, China’s National Strategy is to achieve “the great rejuvenation of the Chinese nation” by 2049.

In this vision, a rejuvenated China would have raised its “influence, appeal, and power to shape events to a new level,” and it would field a “world-class” military that can “fight and win” and “resolutely safeguard” the country’s sovereignty, security, and development interests. China claims three “core interests,” defined as issues so central to China’s national rejuvenation that their official position is not subject to negotiation or compromise. These include the Chinese Communist Party’s (CCP’s) control, promoting China’s economic development and defending and expanding China’s sovereignty and territorial claims.

“China’s leadership has extended the term ‘core interest’ to cover Taiwan and China’s sovereignty claims amid territorial disputes in the South China Sea, the Senkaku Islands, and the northeastern Indian state of Arunachal Pradesh,” it said. The report said that under President Donald Trump’s leadership, relations between the US and China are “stronger than they have been in many years,” and the Department of War will support efforts to build on this progress.

“We will do so in part by opening a wider range of military-to-military communications with the PLA (People’s Liberation Army), with a focus on strategic stability as well as deconfliction and de-escalation, more broadly. We will also seek other ways to make clear our peaceful intentions,” it said. The report emphasised that US interests in the Indo-Pacific are fundamental — but also scoped and reasonable.” We do not seek to strangle, dominate, or humiliate China. Rather, as laid out in President Trump’s National Security Strategy, we seek only to deny the ability of any country in the Indo-Pacific to dominate us or our allies. That means being so strong that aggression is not even considered, and that peace is therefore preferred and preserved,” it said. The Department of War will therefore prioritise bolstering deterrence in the Indo-Pacific through strength, not confrontation.

“President Trump seeks a stable peace, fair trade, and respectful relations with China, and the Department of War will ensure that he is able to achieve these objectives from a position of military strength. In the process, we will forge and sustain a balance of power that will enable all of us to enjoy a decent peace in an Indo-Pacific — one in which trade flows openly and fairly, we can all prosper, and all nations’ interests are respected,” it said. The Xi-Modi meeting marked the onset of monthly high-level engagements between the two countries.