It was all warm and friendly when Prime Minister Narendra Modi received China's First Couple in Ahmedabad. It was all warm and friendly when Prime Minister Narendra Modi received China's First Couple in Ahmedabad.

The great bonhomie generated between Asia's giants at Ahmedabad and New Delhi is withering away in the windswept cold desert of Ladakh. Monday marked three days of Chinese President Xi Jinping's departure after wrapping up a successful visit to India, but it was also the 12th day of a border standoff between the two nations in Ladakh.

It was also the day that Army Chief General Dalbir Singh postponed his visit to Bhutan as the standoff with Chinese troops at Chumar on the Line of Actual Control (LAC) in eastern Ladakh remained unresolved. The only positive development was the People's Liberation Army (PLA) commenting for the first time on the border tussle, saying that both sides can resolve such issues through dialogue.

Top government sources admitted for the first time that the PLA troops were holding positions around three kilometres inside Indian territory in the Chumar region along the LAC. "They are claiming it as their territory and asking us to go back. But our forces have been instructed not to move back," a senior government official said.

Officials privy to the situation on the ground said if disputed areas are taken into account, the intrusion could be much more. "If we consider the area that we claim has been occupied by China, then they are around 10 km inside," the official said.

Minister of State for Home Affairs Kiren Rijiju was briefed by the chief of the Indo-Tibetan Border Police (ITBP), which holds Indian positions in Chumar area. With the Chinese not retreating and the situation remaining tense, the government could send in reinforcements to strengthen Indian positions, said sources.

According to the assessment in New Delhi, the way forward from this situation is to find a facesaving arrangement. China has brought its soldiers right up to the border in Chumar, which led to a build-up by India. If both sides agree, there can be simultaneous withdrawal. It is more difficult for China to sustain its troops as their supply lines are deeper, said officials. There are already signs of difficulties being faced by the other side.

There are around eight battalions of ITBP comprising nearly 8,000 personnel in the region.

"We have decided to put more boots on the ground but we will not retreat," a government official said. In addition, the Army has around 15 battalions in the area. Around 1,800 Indian soldiers face an estimated 800 Chinese troops in the standoff zone.

General Dalbir Singh was scheduled to be in Bhutan on Monday for a three-day visit but he preferred to stay in New Delhi as the situation was still evolving, with India prepared to strengthen its build-up even more if the Chinese side shows no signs of relenting.

The Army chief's presence in New Delhi is significant, particularly when Defence Minister Arun Jaitley is unwell and Prime Minister Narendra Modi is preparing to leave for the US.

Amid suspense in New Delhi over the next move, China for the first time officially reacted to the recent border incidents, saying there are differing perceptions of the LAC but the two sides could resolve boundary issues through dialogue. This is the first time in 12 days, since the standoff was reported on September 10, that the Chinese Ministry of Defence has commented on the incidents.

China said its troops had always strictly observed relevant agreements between the two countries. "The two sides can properly resolve issues arising in the border areas through dialogue and consultations," it said in a statement.

The Chinese side referred to a joint statement issued at the end of President Xi Jinping's recent visit to India that said the two countries wished to build a closer developmental partnership and recognised peace and tranquility in the China-India border areas as an important guarantor for development and continued growth of bilateral relations. "We are willing to work with the Indian side to earnestly implement the important consensus agreed upon by the leaders of the two countries and work together to maintain peace and tranquility in the China-India border areas," the statement said.

The comment was perceived as a positive development as it was backed by Chinese Foreign Ministry spokesperson Hua Chunving, who claimed President Xi's visit to India had removed some suspicions between the two sides. The spokesperson reiterated the stress on a political resolution of the border issue through talks.

China on Monday said that it believed New Delhi and Beijing had the "capacity and confidence" to defuse the on-going tensions along the Line of Actual Control (LAC), although its officials have maintained that Chinese troops had not strayed beyond their perception of the disputed LAC.

The Foreign Ministry here sought to downplay the border row, saying that both Prime Minister Narendra Modi and President Xi Jinping had last week, during the Chinese leader's visit to India, "reached an important consensus on politically resolving the border issue through friendly consultations" and that "effective mechanisms" were in place to do so.

The Chinese military has, however, maintained that its troops have followed protocol and stayed "on China's side" of the LAC.

However, there are differing perceptions of where the disputed line runs in the area, and officials have pointed out that by setting up tents and camping on disputed territory, China had escalated tensions. In the past, both sides have only patrolled up to their respective claim lines.

While the stand-off at Demchok and Chumar cast a shadow over Xi's trip, Foreign Ministry spokesperson Hua Chunying said it was "totally unnecessary suspicion" to suggest the visit had been affected as both Modi and Xi had "reached consensus" on the issue.

Business as usual

The border row has not, however, appeared to dampen the enthusiasm of Chinese investors following the $20 billion investment commitment announced by Beijing during Xi's visit.

On Thursday, several of China's biggest companies, from investment and industrial conglomerate Fosun and telecom firm ZTE to energy giant TBEA, will gather in Beijing to watch a webcast of Modi launching his "Make in India" campaign, following which they will engage with Indian officials here. "India is a great market and under the leadership of the new Prime Minister Narendra Modi, the country is now seen as a market with better prospects for foreign investments," Fosun's Managing Director of Private Equity, Pan Song, told the official China Daily.

- With inputs from Ananth Krishnan in Beijing

