It is obvious that China cannot allow India or the US to open up a Consulate in Lhasa. Tibet and Xinjaing are restive and China is at sixes and sevens to take a firm grip on both these areas. They have tried every possible trick in the book - repression, threat, indoctrination, pouring in unheard sums of money and so on. Nothing has worked for China and China is in dire straits over both these region. If one has diplomats in Lhasa, they cannot be asked to leave, as China does for all foreigners when there is any lock-down China organises to curb the restive people of Tibet. Thus, these diplomats will have a 'bird's eye view' of the reality and repression that China does first hand. That would expose China in its true colours. China also fears that the Consulate would become a centre for the Dalai Lama's supporters and the Tibetans in general. Naturally, China is apprehensive of people they call 'splittists'. These people could catalyse the aspirations of the Tibetan people, now under Han bondage. This could also encourage the the 'splittists' of Xinjiang and then bring the Chinese dream of mining the vast natural resources of these two virgin regions that is fuelling the Chinese economy, as also it would create a 'break' in the oil and gas pipeline that is connecting China to the CAR hydrocarbon reserves. A consulate in Chengdu is of no use to India since it does not serve any purpose.