China using LAC disengagement to reset India ties, curb U.S. alignment, says report

China is attempting to leverage the disengagement from remaining standoff sites along the Line of Actual Control (LAC) to ease tensions and stabilise its relationship with India, a U.S. Department of War report said on Wednesday (December 24, 2025). The report further notes that China has likely explored potential options for bases in several countries, including Bangladesh, Pakistan, Sri Lanka, and other regions, underscoring its growing strategic reach.

The October 2024 agreement, the report notes, may be part of a broader Chinese strategy to prevent deeper strategic alignment between New Delhi and Washington.

China’s expanding military footprint in South Asia has also drawn attention. According to the report, Beijing has delivered 36 J-10C fighter aircraft to Pakistan in two separate orders over the past five years, along with four frigates.

Reached agreement with China on LAC patrolling, resolution of friction points: India

It further reads that the announcement by the Indian leadership came just two days before a meeting between Chinese President Xi Jinping and Prime Minister Narendra Modi on the sidelines of the BRICS summit, signalling a calibrated diplomatic thaw after years of military and political strain.

The Xi-Modi interaction marked the beginning of monthly high-level engagements between the two countries. These discussions have focused on border management mechanisms, and explored steps to stabilise broader bilateral ties, including the resumption of direct flights, visa facilitation, and exchange initiatives for academics and journalists.

China is likely attempting to leverage the reduction in tensions along LAC to stabilise relations with India and prevent further deepening of U.S.-India strategic ties, the report states.

However, India is believed to remain cautious, viewing Beijing’s overtures through the lens of past actions and unresolved disputes. Persistent mutual distrust and multiple strategic irritants are expected to continue constraining the relationship.

Meanwhile, China’s leadership has broadened the scope of what it terms its “core interests”, extending it beyond Taiwan to include sovereignty claims in the South China Sea, the Senkaku islands, and India’s northeastern State of Arunachal Pradesh — an assertion that continues to be strongly rejected by New Delhi, the report further reads.