The Indian foreign ministry said the general's planned visit in August had not taken place and called on China to show more "sensitivity." It gave no details about any response by New Delhi.
The Times of India, which first reported the story, said that India had cancelled defence exchanges with China, though a senior defence source cast doubt on this. "No defence exchange has been cancelled. The matter (of the general's visit) is being resolved," a highly placed military source told AFP on condition of anonymity.
The Chinese defence and foreign affairs ministries declined to comment when contacted by AFP. News that BS Jaswal, an Indian lieutenant general responsible for the northwestern state of Jammu and Kashmir, had been refused a visa to travel to China caused outrage in India's right-wing opposition party.
"This is the worst kind of insult inflicted upon India," Prakash Javadekar, spokesman for the opposition Bharatiya Janata Party (BJP), told reporters.
The Times of India said Beijing had denied the visa because Jaswal controlled a "disputed" area. India bristles at any outside interference in Kashmir, which it views as an integral part of its territory.
The Himalayan Muslim-majority region is administered jointly by India and Pakistan, but claimed in full by both. China also claims part of it, which it says should be in Tibet. "While we value our exchanges with China, there must be sensitivity to each others' concerns," said an Indian foreign ministry statement on Friday. "Our dialogue with China on these issues is ongoing."
The short Indian foreign ministry statement made no reference to New Delhi's response but underlined that "useful" defence exchanges had taken place in recent years. Despite growing trade between China and India, ties between the emerging giants are wracked by mistrust.
Border disputes in Kashmir and the northeastern Indian state of Arunachal Pradesh, a short war in 1962 and the presence of Tibet's spiritual leader, the Dalai Lama, in India all contribute to an atmosphere of suspicion.
China is also a close ally of Pakistan -- India's regional foe -- supplying investment, industry know-how and weapons, including missile technology, according to New Delhi. Last year, New Delhi was angered by the Chinese practice of issuing visas on separate pieces of paper for Kashmiris which were then stapled into their passports. The practice resulted in many Kashmiris being prevented by Indian immigration officials from boarding their flights on the grounds that the visas were not valid.
China has also registered complaints with New Delhi in the past year over visits by Indian Prime Minister Manmohan Singh and the Dalai Lama to Arunachal Pradesh.
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