China urged India on Monday to give up impractical "illusory thinking" and immediately withdraw all its troops that it said have "illegally" crossed into Chinese territory.
China would defend its territorial sovereignty "at all costs", Defence Ministry spokesman Wu Qian told reporters.
"The 90-year history of the People's Liberation Army (PLA) demonstrated its increasing capacities and unshakable determination to safeguard national sovereignty and territorial integrity. It is easier to shake the mountains than to shake the PLA," Wu was quoted as saying by the state-run Global Times.
Indian and Chinese troops have been engaged in a dragging stand-off in Doklam, which is at a tri-junction of India, Bhutan and China.
China calls Doklam its own territory but India and Bhutan say it is Bhutan's.
India stopped the Chinese Army from building a road in Doklam in June, leading to the face-off between New Delhi and Beijing.
Wu urged India to immediately withdraw its troops, saying this was a prerequisite to resolving the issue.
"India should immediately withdraw its troops to the Indian side of the boundary with China, which is a precondition and basis for resolving the conflict.
"India should take practical measures to correct its wrongdoing, stop provocation and jointly safeguard peace in the border regions.
"The Doklam region is part of China's territory. China has every right to build road in its own territory," Wu added.
India has blamed China for trying to change the status of the tri-junction and wants the issue to be resolved diplomatically. China says the withdrawal of troops by India is a precondition for talks.
The matter is expected to feature in talks between National Security Advisor Ajit Doval and his Chinese counterpart State Councillor Yang Jiechi when they meet on July 27-28 in Beijing.