China's military said Indian troops had crossed the border Monday near Pangong Tso, a lake at 4,200 metres (13,500 feet), and engaged in "open provocation and caused the border situation to become tense".
"The Chinese military is taking necessary countermeasures," the People's Liberation Army's regional command said in a statement, accusing India of "seriously violating China's territorial sovereignty".
Earlier Monday India's defence ministry said Chinese troops had "carried out provocative military movements to change the status quo" in the eastern Ladakh region over the weekend.
Military commanders from the two sides held talks Monday in a new bid to ease tensions between the nuclear-armed neighbours, who fought a border war in 1962 and have staged regular high altitude clashes since.
China did not confirm Saturday's incident, but the foreign ministry said its troops have "always strictly respected" the unofficial border known as the Line of Actual Control