A recent Pentagon report submitted to the US Congress highlights China’s claim over Arunachal Pradesh as a “core interest” linked to its broader national rejuvenation goals aimed at achieving a world-class military by 2049. The report suggests that China may attempt to capitalize on de-escalating tensions along the Line of Actual Control (LAC) with India to stabilize relations and curb the deepening of US-India ties, particularly following a recent agreement between the two nations to disengage from border standoffs. Former diplomat KP Fabian emphasized that China’s expansionist policies threaten India’s territorial integrity, reflecting a historical pattern of such claims, while noting India’s pragmatic approach in maintaining relations, particularly in trade and investment. Despite ongoing efforts to normalize ties—illustrated by resumed direct flights and mutual agreements on people-centric initiatives—mutual distrust persists, complicating the bilateral relationship. This situation underscores the broader geopolitical dynamics at play, where China’s territorial ambitions and strategic positioning challenge India’s security interests and its growing partnership with the United States.