Story of Border Dispute B/W China and Bhutan

China began asserting its claims over Bhutan with increasing vigor in the late 19th century to counter growing British influence there.
In 1930, Mao Zedong claimed that Bhutan fell within the “the correct boundaries of China.” The People’s Republic of China was even more aggressive in asserting such claims;
Official maps showed parts of Bhutanese territory as part of China.
Moreover, during its annexation of Tibet, China briefly occupied eight Bhutanese enclaves in western Bhutan. Chinese incursions into Bhutanese territory have continued, as has China’s building of roads in disputed areas.
When the British left Bhutan, the Chinese captured some border villages of Bhutan. Since 1947, those territories are under dispute. Bhutan does not maintain diplomatic relation with China due to this persisting border dispute. This gives India enough space to exercise a sphere of influence in Bhutan.
Even in the recent times, the border has not been resolved and China has undertaken tremendous intrusions into the border area around Bhutan.
These intrusions deprive the people of Bhutan of forest produce and create uncertainty about their resources and livelihood.
Under 1998 Treaty to Maintain Peace and Tranquility on the Bhutan-China border areas, the two sides agreed to maintain the status quo on the border areas.
Indeed, it was the construction of a road into Doklam by the Chinese that triggered the 73-day-long standoff between Indian and Chinese troops in 2017.
The boundary between China and Bhutan is yet to be demarcated, and the middle, eastern and western sections of the border are disputed.
China and Bhutan became neighbors only after the Chinese annexation of Tibet in 1951. Prior to that it was with Tibet that Bhutan shared borders.
Until recently, the Sino-Bhutanese border dispute involved territory in the western and central sectors only. Beijing claimed 764 square kilometers of Bhutanese territory: 495 sq km in the Jakurlung and Pasamlung Valleys in north-central Bhutan and another 269 sq km in western Bhutan.
Since early June, China has laid claim to the Sakteng Wildlife Sanctuary, which covers an area of 650 sq km and lies in Bhutan’s eastern district.
Although China and Bhutan do not have official diplomatic relations they have engaged in 24 rounds of ministerial-level talks to resolve their border dispute.
In 1996, China put forward a package proposal, under which it offered to recognize Bhutanese sovereignty over the some valleys in return for Bhutan recognizing Chinese sovereignty over Doklam, Sinchulung, Dramana and Shakhatoe in the western sector. Bhutan has not accepted this proposal to date.