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China has said that there is no scope for any compromise with India until India pulls the troops back from the Sikkim border and they say that the India has to take a call if they want to resume talks.
China's Ambassador to India, Luo Zhaohui, told news agency PTI that withdrawal of Indian troops from the area is a "precondition" to any resolution.
Asked about warning remarks by official Chinese media and think-tanks that the conflict can lead to a "war" if not handled properly, the ambassador "There has been talk about this option, that option. It is up to your government policy (whether to exercise the military option)."
Chinese President Xi Jinping and PM Modi are set to attend a summit of G 20 in Hamburg in Germany and so far no bilateral meeting has been arranged for the two.
According to the Chinese interpretation of events, Indian guards crossed into the Donglang region early in June and obstructed work on a road on the plateau.
Beijing claims that the area entered by Indian troops is a part of China according to an 1890 agreement with the British. Doka La is the Indian name for the region.
India has said that it intervened on behalf of Bhutan. As the tiny Himalayan Kingdom was not a part of the 1890 agreement between Britain and China, a dispute remains between China and Bhutan over where their common border lies.