China probably seeks to capitalise on decreased tension along LAC to stabilise ties with India: U.S. report

Key Points

1. U.S. Department of War report (December 23, 2025) analyzes China's military and security developments.
2. In October 2024, India and China agreed to disengage from remaining standoff sites along the LAC.
3. Xi Jinping and Narendra Modi met on the sidelines of the BRICS Summit.
4. Monthly high-level engagements between India and China discussed border management and bilateral relations.
5. China aims to achieve 'the great rejuvenation of the Chinese nation' by 2049.
6. China identifies three 'core interests': CCP control, economic development, and sovereignty/territorial claims.
7. China's 'core interests' extend to Taiwan, South China Sea, Senkaku Islands, and Arunachal Pradesh.
8. The U.S. seeks to bolster deterrence in the Indo-Pacific through strength, not confrontation.