The signing of a memorandum of understanding between China and Bhutan to agree on a three-step roadmap to resolve their border issues has been portrayed quite positively by both nations. However, this might be just another cause of concern for India when it comes to China's strategic expanse in the region and beyond. India's clout with China has multiple dimensions. First, direct Chinese incursion in the disputed territories has extended beyond the Ladakh region. This year itself nearly 100 soldiers of China's People's Liberation Army (PLA) made an incursion across the Line of Actual Control or LAC in Uttarakhand's Barahoti region. Chinese troops further transgressed the Tawang sector in Arunachal Pradesh. Though the incursion in Uttarakhand had been mild and Chinese soldiers went back within hours, it was problematic as it indicated growing assertiveness of China towards India's 'heartland' — going well beyond the historically conflicted zones of Ladakh and Northeast. Secondly, apart from direct incursions, as is well known, China has been trying to circumvent Indian territory through its investment and debt trap in the neighbouring countries. Of course, nothing appears new in such behaviour from the part of China. But here lies the biggest catch, the normalization of such an approach is allowing the gradual, and sometimes steep, build-up that is potentially leading towards disastrous consequences. On one hand, we have examples of China building ports in countries like Sri Lanka, Myanmar etc., on the other, one can notice direct interferences in territories of neighbouring countries — Bhutan and Taiwan being the fresh examples. Not to forget its all-encompassing Belt and Road initiative and the subsequent debt traps. So, what allows China to advance with the approach it does? Firstly, unlike India, it is relatively free from the constraints of democratic principles and the doctrine that respects territorial sovereignty. Secondly, it is China's growing economic prowess that many tout as being the greatest in the world. It allows China to spend lavishly on military infrastructure. And third, China's growing alliances in South Asia and the Middle East. The nature of its alliances has a character of its own — those are bare rational, far away from the garb of values — historical, democratic or otherwise. China appears to be adopting a hard and soft approach — be it Taiwan or Bhutan — wherein it asserts its dominance over smaller countries without portraying the same. China's approach is highly ambitious and purely outcome-based. Indian alliances appear more to be focused towards the West in comparison to those in the vicinity. It must be noted that despite being a huge country in terms of population, territory and economy, China accords importance to the countries in vicinity, with whatever approach and intention. Its proximity with its allies descends as we move outwards along South Asia's concentric ring. India, on the other hand, is banking on more prominent nations of the West. While Chinese ties with Pakistan, Russia, Turkey, Nepal, Bhutan etc. are getting stronger with each passing day, India is engaging with countries like the US, the UK, Australia, and fora like Quad. In contrast to Chinese alliances, India focuses more on values, democratic principles and cultural ties. The most important thing at the present point in time is to understand the importance of alliances. China's economic prowess may be a powerful tool to maintain its hegemony, but its real strength is reflected in terms of its alliances. With every single advance in this direction, China appears more intruding and intimidating. It is high time for India to revisit its alliance approach which requires a fair bit of restructuring and balancing. While moving ahead with its alliances with Western nations, India needs to balance the regional alliances as well. Both have their own importance. China appears to be losing connection with the West but India cannot afford to do the same with countries in its vicinity. These need to be given more prominence. The second area that requires balancing is the emphasis of alliances. India's emphasis on cultural, historical and value-based ties has a great advantage but, if India wants to have an edge over China in future, it must strive to match with China in its tangible market-based approach to alliances as well. It is no doubt unfortunate that a kind of animosity has to be discussed in the South Asian region. But sometimes to neutralize animosity, it has to be taken to a level where both parties stand comparable to each other.