Crafting Bhutan-China Ties: Small State Agency in Emergent Diplomatic Relations

Abstract: Bhutan sits across a geopolitical fault line in South Asia. To its south lies its traditional partner—India. To its north lies China: a country whose economic power could significantly benefit Bhutan but whose regional orientation is strategically opposed to that of India. This article explores how Bhutan manages its growing relationship with China and seeks to chart where the relationship might go in the future. It shows how increasing economic and commercial ties with China are exerting growing pressure on Bhutan, a country with few developmental opportunities. These ties—in parallel to increasing political engagements—are moving Bhutan closer to diplomatic recognition of China; a decision that will impact on the regional balance of power well beyond the country’s borders. How and when this policy shift will occur is unclear, as Bhutan has been able to successfully prioritize its own interests over Chinese agendas. In doing so, Bhutan has managed to exert a higher degree of agency than other small states in the region. This outcome challenges traditional notions of small state agency in international relations. This study finds that this has been possible due to both material power considerations and the perceptional value accorded to the relationship.