China claimed that it has been strictly observing the Line of Actual Control (LAC) along the boundary with India and said reports of Chinese repeated incursions were "incompatible with the facts.
"Chinese side has always been strictly observing the LAC ... and has been making constant efforts in maintaining peace and tranquillity along the border area," Chinese Foreign Minister spokesman Zhu Bangzao said.

The accusation made by Arunachal Pradesh Chief Minister Mukul Mithi of repeated incursions by Chinese troops into the State was "incompatible with the facts," Zhu said.
Mr. Mithi earlier said the Indian Army and intelligence agencies had recently discovered a Chinese-built mule trail in Kaila Pass in Dibang valley district proving that the Chinese army has made ‘repeated’ incursions along the LAC in the State.
Meanwhile a Chinese government ‘white paper’ on national defence issue remained silent on the vexed Sino-Indian border issue, plaguing bilateral ties since the 1962 war, but said China favoured settling pending and unresolved border and maritime demarcation issues through negotiations.
The ‘white paper’, titled ‘China’s National Defence in 2000’ mentions a series of agreements and treaties signed by the Chinese government with neighbouring countries like Pakistan, Nepal and Russia to resolve their boundary disputes.

"China has solved or basically solved boundary issues left over by history with most of its adjacent countries," the paper, released by the State Council, China’s cabinet, says without giving a status on the Sino-Indian boundary dispute.

India says China is illegally occupying 43,180 sq kms of Jammu and Kashmir including 5,180 sq kms illegally ceded to Beijing by Pakistan under the Sino-Pakistan boundary agreement in 1963. On the other hand, China claims that India has occupied about 90,000 sq kms of Chinese territory.