US report says China likely seeks to stabilise ties with India amid LAC calm

China is likely seeking to capitalise on reduced tensions along the Line of Actual Control (LAC) with India to stabilise bilateral relations and curb the deepening of US-India ties, according to a US Department of War report.

The report, part of the department’s annual briefing to Congress on “Military and Security Developments Involving the People’s Republic of China 2025,” noted that in October 2024, India and China agreed to disengage from remaining standoff sites along the LAC . This came just before a meeting between Chinese President Xi Jinping and Prime Minister Narendra Modi at the BRICS Summit, which marked the start of monthly high-level engagements on border management, direct flights, visa facilitation, and exchanges of 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.

It also highlighted China’s long-term goal of achieving the “great rejuvenation of the Chinese nation” by 2049 , which includes raising its global influence, building a world-class military capable of safeguarding sovereignty, security, and development interests, and defending its core interests. These core interests include CCP control, economic growth, and territorial claims, extended to Taiwan, the South China Sea, the Senkaku Islands, and Arunachal Pradesh.

The report underlined that US-China relations under President Donald Trump are stronger than in many years, with the US seeking strategic stability in the Indo-Pacific through deterrence, military-to-military communications, and de-escalation, rather than confrontation. “We do not seek to strangle, dominate, or humiliate China… We aim to be strong enough that aggression is not even considered, and peace is therefore preferred and preserved,” it said.

The department emphasised that Trump’s approach prioritises a stable peace, fair trade, and respectful relations with China, maintaining a balance of power that allows prosperity and security for all nations in the Indo-Pacific.