A day after both the Indian government and the Tibetan spiritual leader the Dalai Lama openly took a swipe at China, the Dragon has issued a veiled but audacious threat to India.

In its state-run paper the People's Daily, China has said that India seems to have forgotten the lessons of 1962 war.

In a provocative article lashing out at India, China also said that Dalai Lama was being used by the Indian government to further its own agenda.

Here is what the People's daily has said, warning of a potential war-like situation: "India may have forgotten the lesson of 1962, when its repeated provocation resulted in military clashes warning. India is on this wrong track again."

Attacking the Dalai Lama for his visit to Tawang, China has also accused the Indian government of using the Dalai Lama to push its own agenda and has once again warned that when the conflict gets sharper and sharper, the Chinese government will have to face it and solve it “in a way India has designed.”

"The Dalai Lama went to southern Tibet at this critical moment probably because of pressure from India. By doing so, he can please the country that has hosted him for years. The appearance and activities of the Dalai Lama in southern Tibet may foment anti-China sentiment among people living in the region. When the conflict gets sharper and sharper, the Chinese government will have to face it and solve it in a way India has designed,” a Chinese analyst Hu Shisheng, a researcher of Southern Asian studies at the China Institutes of Contemporary International Relations, said Sunday (November 9).

“India may make use of the Dalai Lama to solve the decade-long territorial conflict by encouraging his visit to southern Tibet.”

“The appearance and activities of the Dalai Lama in southern Tibet may foment anti-China sentiment among people living in the region, Hu said.

During his visit to a remote, high-altitude Tibetan monastery in the southern Tibet region Sunday, the Dalai Lama spoke out against China and in a move unusual for him made a politically loaded statement.

"My stand that Tawang is an integral part of India has not changed", the Dalai Lama said in defence of his host country. On the Tibetan question, he said, “the Tibetan spirit in Tibet is very strong. On the other hand, China has taken a hard line.”

The visit took place amid reports of major military build-ups on both sides of the border.

On the other hand, foreign policy experts say India has stuck to its position even though the communist nation has been asserting itself on the issue.

Former National Security Advisor Brajesh Mishra said India has done what it had been doing on the issue in the past.

"India has done what it has been doing in the past. Chinese are asserting their position. Our stated position is that as long as Dalai Lama does not involve himself in political activity, he is free to visit any part of the country he wants," he said.

Mishra, however, added that the only new thing in the whole issue is that Chinese have strongly started asserting their position on the issue.

Asked whether India has strongly asserted its position on Arunachal Pradesh, he said, "neither have we strongly asserted nor we have made any new position. We have maintained our position."

Meanwhile Finance Minister has said the only way to solve disputes between the two countries was through tough dialogue. Mukherjee acknowledged that there were still certain issues between Indian and China pertaining to the border dispute. The minister, however, said all such disputes will be resolved with China through talks.

“The actual resolution of dispute is yet to take place and there is still some divergence of views,” he said adding India does not visualise any conflict on border issues with China and that bilateral trade between the two countries is expanding fast.