India retaliated by starting to issue visas to Chinese citizens with a map of India that includes all territories claimed by New Delhi.
In New Delhi, China is viewed with suspicion as a long-time ally and weapons supplier to Pakistan, India's bitter rival. For Beijing, the presence in India of the Tibetan spiritual leader the Dalai Lama and 120,000 other exiles from Tibet remains a source of tension.
India says China controls 16,000 square miles of its territory in Aksai Chin in Kashmir, while Beijing claims that the Indian state of Arunachal Pradesh, which shares a 650-mile border with the Chinese-run region of Tibet, is rightfully Chinese territory.
India and China fought a brief border war in 1962 and large stretches of the India-China border are still undemarcated.
The territorial disputes remain unresolved despite 15 rounds of talks, but relations have improved in recent years as China and India's trade has grown exponentially to reach more than nearly £50 billion last year.
But the trade remains heavily skewed in favour of China, which is now India's biggest trading partner.