In response, the official spokesperson at India's foreign ministry said in a statement that Arunachal Pradesh was "an integral and inalienable part of India".
Beijing has raised similar objections in the past to Indian leaders visiting the state, and New Delhi has stuck to its consistent position.
"China urges the Indian side to proceed from the overall situation of bilateral relations, respect China's interests and concerns, cherish the momentum of improving relations between the two countries, and refrain from any actions that intensify disputes and complicate the border issue", the country's foreign ministry said in a statement.
"The State of Arunachal Pradesh is an integral and inalienable part of India".
Despite positive public overtures from the Indian leadership, visits of Indian leaders to Arunachal Pradesh have continued to raise hackles in Beijing.
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Modi laid the foundation stone for a new airport development at Hollongi in the region's Parum Pare district during a two-day tour of northeast India.
Addressing a massive gathering of supporters on the occasion, the PM said that an additional Rs 13,000 crore worth of projects for the northeastern state are in the pipeline.
In 2017, the two Asian giants were involved in a high-altitude standoff in Bhutan's Doklam region after the Indian army sent troops to stop the construction of a military road by China.
Noted at previous news briefings, the ministry believed China and India can handle various border affairs through a relevant mechanism as the pair has established a mature management mechanism for border-related issues.
The strong public reaction from the Chinese government came despite the leaders of two countries, PM Modi and President Xi Jinping, having met four times past year, most recently on the sidelines of the G-20 Summit in Buenos Aires in December. Chinese president Xi Jinping is slated to visit India this year for the second informal summit.
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