LyrArc Article Gist
Bhutan is a small mountain kingdom in north eastern India, bordering Tibet. Historically close ties with Tibet continued after China's takeover of Tibet following the coming to power of China's Communist Party in 1949. This led to a friendship treaty with India in 1949. A narrow piece of terrritory with 34 square kilometres is part of the dispute between China and India. India opposed the move to build Chinese roads in the area leading to a standoff that is now over 50 days. This territory is significant because it connects India's central plains to the northeastern states. Bhutan opposes the Chinese road work but tries to maintain friendly relations with China. The close relationship between India and Bhutan is part of the situation that emerged after China's takeover of Tibet. The Royal Bhutan Army's salaries are paid by India, road construction is done by India, and subsidies for food and kerosene were provided by India. A parliamentary democracy with a monarch was established in Bhutan under king Jigme Wangchuk, and elections were held in 2008, 2013. This has led to more openness towards China, leading to concern in India. 

Bhutan is a popular destination for Chinese tourists who pay $250 for a visa. Indians do not need a visa.