China's Defence Ministry cautioned New Delhi today over Indian plans to construct 54 new border posts along an eastern stretch of their disputed frontier.

Spokesman Yang Yujun said that China urged India to do more to maintain peace and stability in the area and "not to do things that may complicate the situation."

A long-festering border dispute continues to bedevil relations between the two countries despite a recent warming of relations.

They fought a month-long border war in 1962 that killed about 2,000 soldiers and ended with each side accusing the other of occupying its territory.

As recently as September, Indian and Chinese troops confronted each along the border, even as their leaders were promising to boost economic co-operation and substantially increase Chinese investment in India's infrastructure.

Beijing claims 35,000 square miles of land in India's north-eastern state of Arunachal Pradesh, while India accuses China of occupying 15,000 square miles of its territory on the Aksai Chin plateau.