India has said it warned China that construction of the road near their common border would have serious security implications.
In a separate statement, China`s Defence Ministry said China had shown goodwill and that its forces had exercised utmost restraint, but warned "restraint has a bottom line" and that India must dispel any illusions.
"No country should underestimate the Chinese military`s confidence in and ability to fulfil its mission of safeguarding peace, and should not underestimate the Chinese military`s determination and will to defend the country`s sovereignty, security and development interests," it said.
Despite China`s numerous diplomatic representations, its foreign ministry said, India has not only not withdrawn its troops but has also been making "unreasonable demands" and is not sincere about a resolution.
"If India really cherishes peace, it ought to immediately withdraw its personnel who have illegally crossed the border into the Indian side."
Indian Prime Minister Narendra Modi is to visit China early in September for a summit of BRICS leaders.
Indian officials say about 300 soldiers from either side are facing each other about 150 meters (yards) apart on the plateau.
They have told Reuters that both sides` diplomats have quietly engaged to try to keep the stand-off from escalating, and that India`s ambassador to Beijing is leading the effort to find a way for both sides to back down without loss of face.
Chinese state media have warned India of a fate worse than the defeat it suffered in a brief border war in 1962. China`s military has held live fire drills close to the disputed area, they said last month.
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