China is likely seeking to leverage the easing of tensions along the Line of Actual Control (LAC) with India to stabilise bilateral relations and prevent closer strategic ties between New Delhi and Washington, according to a report by the US Department of War.
In its annual report to the US Congress titled ‘Military and Security Developments Involving the People’s Republic of China 2025’, released on Tuesday, the Department of War noted that Indian leaders announced an agreement with China in October 2024 to disengage from the remaining standoff points along the LAC.
The disengagement agreement was reached two days ahead of a meeting between Chinese President Xi Jinping and Prime Minister Narendra Modi on the sidelines of the BRICS Summit.
The Xi-Modi interaction marked the beginning of monthly high-level engagements between the two countries, during which officials discussed border management and future steps in the bilateral relationship, including the resumption of direct flights, visa facilitation, and exchanges involving academics and journalists.
"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.
The report further stated that China’s National Strategy aims to achieve “the great rejuvenation of the Chinese nation” by 2049. Under this vision, a rejuvenated China would have significantly enhanced its “influence, appeal, and power to shape events,” while fielding a “world-class” military capable of “fight and win” operations and of “resolutely safeguard” the country’s sovereignty, security, and development interests.
China identifies three “core interests,” described as issues central to national rejuvenation and therefore not open to negotiation or compromise. These include maintaining the Chinese Communist Party’s (CCP’s) control, advancing 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,” the report said.
The report also observed that under President Donald Trump’s leadership, US-China relations are "stronger than they have been in many years," adding that 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.
Emphasising that US interests in the Indo-Pacific are fundamental but limited, the report stated, “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 said it would prioritise strengthening deterrence in the Indo-Pacific through military strength rather than 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.