Of all the nations that border China, its comparison with Bhutan would appear to be a paradox. In comprehensive power terms, Bhutan is almost a nonentity to China. Bhutan’s biggest disadvantage is its geography that limits its connectivity to India in South and China in north with no access to sea or any other third country without using either Indian or Chinese land or airspace. Nevertheless, in the geopolitical context of today’s South Asia, Bhutan’s geography has strategic ramifications for both India and China. Given the importance of the historical context in explaining the China-Bhutan dynamics, the first section deals with the historical-contemporary trajectory. The second section focuses on the contemporary geopolitical aims and objectives of China in particular in South Asia vis-a-cis India and the missing links that Bhutan could fill. Tibet’s and India’s inevitable influence both political and cultural on the China-Bhutan relationships will be part of the entire discussion.