"We have reasons to be happy to see the two (India and China) collaborate. We should welcome that," Bhutanese Prime Minister Lyonchhen Jigmi Y Thinley told reporters here.
Stating that the Chinese defence minister recently visited India, he said: "I am very much happy to say that relations between India and China are improving."
Noting that Bhutan was a peaceful country, Thinley said that no insurgent group would be tolerated on its territory.
"We have no insurgency problem in Bhutan. However, some separatist group had taken refuge in dense forest of Bhutan. They were a formidable force. Therefore, with regret, we used military force to flush them out," Thinley said after presiding over the annual general body meeting of Maha Bodhi Society of India.
He also was happy over the dinner hosted by Odisha Governor M C Bhandare where he met cine star Vyjayanthimala Bali.
"She is as beautiful as ever," Thinely said.
The Bhutan Prime Minister is scheduled to leave tomorrow evening.