China has dismissed widespread Indian media claims that its side suffered 40 casualties during the June 15 night border clash which left 20 Indian soldiers dead as "fake news". It has further condemned New Delhi giving its troops "freedom of action" to respond with deadly fire if under attack by PLA troops.
But despite the soaring tensions which many feared could see war break out along the disputed Ladakh border region, the two nuclear armed neighbors have agreed to deescalation and disengagement at the border.
Chinese Foreign Ministry spokesman Zhao Lijian confirmed at a news briefing on Tuesday that talks between the two sides' top regional commanders resulted in a positive breakthrough. They "agreed to take necessary measures to promote a cooling of the situation," Zhao said.
"The holding of this meeting shows that both sides want to deal with their disagreement, manage the situation and de-escalate the situation through dialogue and consultations," Zhao added.
The foreign ministry spokesman further described that they "exchanged frank and in-depth views" and "agreed to maintain dialogue and jointly committed to promoting peace and tranquility in the border areas."
The Indian Army also assured that broader conflict along the Actual Line of Control (LAC) has been averted following last week's most serious and deadliest clash in a half-century, with a statement reading: "Corps Commander level talks between India-China yesterday were held at Moldo in cordial, positive and constructive atmosphere," according to the ANI news agency.
"There was mutual consensus to disengage. Modalities for disengagement from all friction areas in Eastern Ladakh were discussed and will be taken forward by both sides," the Indian Army added.
However, there are continued disruptions and worsening relations on other fronts, especially given Modi's domestic base is clamoring for vengeance.
Authorities in India are hitting pause on more than $600 million in deals with Chinese companies in the wake of a deadly border clash with China.
Officials in the western Indian state of Maharashtra said Monday that they were reviewing agreements with three Chinese companies as they seek clarity from the Indian government on how — or whether — to proceed.
Recall too that on Monday China's state-run Global Times issued threats based on overwhelming PLA superiority, underscoring that if Indian troops carry firearms along the LAC and are given 'freedom of action' orders, then it will inevitably "turn into a military conflict" which is "not what most Chinese and Indian people wish to see," according to the editorial.