In a move to tighten its grip on the Himalayan region, India dropped a constitutional provision that allowed the country's only Muslim-majority region to make its own laws.
"India's action is unacceptable and would not have any legal effect," foreign ministry spokeswoman Hua Chunying said in a statement on the ministry's website.
China urged India to be cautious on border issues and to strictly abide by the agreements reached by both countries in order to avoid any actions that would further complicate boundary issues, Hua said.
The disputed region is divided between India, which rules the populous Kashmir Valley and the Hindu-dominated region around Jammu city, Pakistan, which controls a wedge of territory in the west, and China, which holds a thinly populated high-altitude area in the north.