On 28th August India and China decided to end the standoff between them at the Doka La Pass in Doklam at the triboundary point between both countries and Bhutan. Although tension between Beijing and New Delhi had run high for over two months, an agreement was reached to pull back their respective troops and to return to the status quo. While analysts had been warning about a possible escalation of the conflict, the clash was resolved peacefully. In this article, I put forward a liberal argument for the resolution of the internecine conflict. I argue that, in contrast to the 1962 Indo-China war, the economic repercussion caused by a possible military escalation would be too grave in the present time. It is this realisation that has led both countries to embrace a peaceful resolution.