Context: Recently, China has made new territorial claims in the eastern sector of Bhutan’s Trashigang district. Beijing had made this claim while objecting to a request to develop the Sakteng wildlife sanctuary in eastern Bhutan’s Trashigang district at an online meeting of the Global Environment Facility (GEF). 
Background to the situation

• According to written records, there has been no mention of Eastern Bhutan, or Trashigang Dzongkhag (district), where Sakteng is based, that borders Arunachal Pradesh, in 24 previous rounds of boundary negotiations held between the two countries between 1984 and 2016.
• The negotiations have not been held since the Doklam standoff between Indian and Chinese troops in 2017.
• Bhutan has always maintained a discreet silence on its boundary negotiations with China, and it does not have any formal diplomatic relations with Beijing.

Bhutan-China Border Dispute

• Bhutan and China have border disputes dating back to 1984. But they were limited to North Bhutan  and West Bhutan. 
• It is the first time China is making a claim to East Bhutan, more precisely Sakteng was never a part of the exising disputes.

Sakteng Wildlife Sanctuary

• Wildlife sanctuary located mostly in Trashigang District and just crossing the border into Samdrup Jongkhar District, Bhutan. 
• It is one of the country's protected areas. It is listed as a tentative site in Bhutan's Tentative List for UNESCO inclusion.
• The sanctuary is of easternmost temperate ecosystems and landscape
• It is part of the Eastern Himalayan subalpine conifer forests ecoregion. 
• It protects several endemic species including the eastern blue pine and the black-rumped magpie.
• Important rivers: Manas Chu, Bada Chu and Dhansiri Chu.

Global Environment Facility (GEF) 

• It is a multilateral financial mechanism that provides grants to developing countries for projects that benefit global environment and promote sustainable livelihoods in local communities.
• Based in Washington DC, USA, GEF was established during the Rio Earth Summit of 1992.
• GEF is managed by the United Nations Development Programme(UNDP), the World Bank and the United Nations Environment Programme (UNEP)
• With 183 member countries, and alliances with civil society organizations, the purpose of addressing the environmental issues across the globe.

GEF also serves as a financial mechanism for the following conventions

• Convention on Biological Diversity (CBD).
• United Nations Framework Convention on Climate Change (UNECCC).
• UN Convention to Combat Desertification (UNCCD).
• Stockholm Convention on Persistent Organic Pollutants (POPs).
• Minamata Convention on Mercury.

China targets India’s Arunachal Pradesh?

• The key could be the proximity of Bhutan’s “eastern sector” to Arunachal Pradesh – which China claims in its entirety as part of “south Tibet” : It could be the primary reason for Beijing to talk about differing boundary perceptions with Bhutan now.
• Though China might not have said it publicly, it’s not surprising if Beijing was opposed to the India-Bhutan boundary delimitation agreement, which was signed in 2006.
• China’s state-controlled media and Chinese academics consistently blame India for Beijing-Thimphu not having diplomatic ties.

Road Ahead

• Bhutan has protested against Chinese territorial claims in eastern Bhutan and said that it will also contest in future if China refers to the territory as disputed. Safety of Border from China is a concern for both India and Bhutan. Therefore, both sides need to work together on this issue.