Throughout its history, Bhutan has often found itself caught between various imperial forces. It has consistently navigated a fraught geopolitical environment, and it has survived and flourished as the most peaceful nation in South Asia. But Bhutan now faces new challenges in a world with growing political tensions that affect trade and economic interdependence. Bhutan finds itself ‘asymmetrically inbetween’ two large and resource-hungry neighbours — China and India — who maintain a significant trade relationship with each other in spite of their geopolitical differences. Bhutan has historically been aligned more towards India as a consequence of British imperial policy in the region. Due to the rivalry between India and China, Bhutan cannot take advantage of its location to benefit from both neighbours.
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