China’s expanding engagement has reconfigured established patterns of regional interaction that historically reflected India’s predominant influence, without necessarily constituting a formalised structure of hierarchical control. This research paper analyses China’s increasing influence in Nepal and Bhutan via economic engagement, infrastructural diplomacy, political alignment, and territorial assertiveness, evaluating its consequences for India’s national security and regional status. The Belt and Road Initiative (BRI), more cooperation on security issues, and more diplomatic activity in Nepal have made Kathmandu less dependent on New Delhi. This has made it easier for Beijing to strengthen its political and strategic ties. China’s claim to territory in Bhutan, especially over Doklam and Sakteng, as well as its 2021 three-step plan to resolve the border issue, show that China is trying to weaken India’s power and shift the balance of power in the Himalayas. Through qualitative analysis of policy documents and scholarly literature, the study illustrates how Nepal and Bhutan are utilising a hedging strategy to enhance their autonomy amid the intensifying Sino-Indian rivalry. Instead of implying a total erosion of India’s standing, the study contends that the expansion of Chinese engagement has diminished the exclusivity of India’s influence while simultaneously introducing heightened strategic complexity into the management of frontier regions. It ends by outlining policy options for India to rebuild confidence, boost connectivity, and engage in proactive diplomacy to keep its strategic power in the Himalayan area.
Keywords: China