China's Ministry of Foreign Affairs said on Friday that is imperative for Indian troops to pull back to the India side of the border before any meaningful dialogue can take place between China and India.
Attempting to play down the situation, however, India also said it remained committed to finding a "peaceful resolution through dialogue" with China.
"This evidence is recognised by the Bhutan side", Lu added. But Indian military officials rejected claims that there were signs of imminent conflict in the region - the site of intense skirmishes in 1967, provoked by similar disputes over border works.
Jaitley said that Bhutan government had made it clear that China was trying to claim Bhutanese land and said this was "absolutely wrong". It further said that the boundary in the region should be finalised after consulting with all concerned countries. However, this claim has been rubbished by both Bhutan and India. But there seems a determination at the top levels of the Indian government not to let China alter the determination of the tri-junction. However, border trade continues and the Lipulekh route to Kailash remains open.
Bhutan and China do not have formal relations, but maintain contacts through their missions in New Delhi.
Bhutan and China and both countries have written agreements of 1988 and 1998 stating that the two sides agree to maintain peace and tranquility in their border areas pending a final settlement on the boundary question. On Thursday, Chief Rawat visited the headquarters of the 17 Mountain Division in Gangtok and 27 Mountain Division in Kalimpong.
What has come as a surprise is that the June 16 incident happened just over a week after a meeting between Prime Minister Narendra Modi and Chinese President Xi Jinping on the sidelines of the Shanghai Cooperation Organisation (SCO) summit in Astana, Kazakhstan.
The MEA said, as a matter of fact, the Chinese troops violated border agreement.
"The pictures clearly show that the Indian soldiers and vehicles have overstepped the crest which is defined as the boundary and entered Chinese territory", said Lu.
In the map, released by the Chinese foreign ministry last night, a blue arrow with markings in Chinese, points Indian troops alleged "transgression" into the area to prevent the PLA troops from building a road.