It comes after Beijing lost at least 40 soldiers in a clash with India at their disputed border this week. China had previously not said anything about any losses in the hand-to-hand combat that took place in the heavily contested Galwan Valley in the western Himalayas last week in which 20 Indian soldiers were killed and at least 76 injured.
But the state-run Global Times ran an editorial which made direct threats to the Indian government.
The Editorial added: “Chinese military observers said that an escalated, large-scale military conflict involving main Chinese troops, if that were to happen, would mean a rout just like the war in 1962, with very disproportionate casualty figures unfavourable to India.
“In a potential self-defence counter-attack, China will secure its own territory and not likely claim Indian territory after emerging victorious, but the battle will deeply hurt India so much that global position and economy would go backwards to decades ago.”
The newspaper’s editor-in-chief warned that the “nationalists of India need to cool down.”
Hu Xijin said in a post on Twitter: “China’s GDP is 5 times that of India, military spending is 3 times.”
The nuclear-armed Asian neighbours traded accusations on Saturday that the other had violated their shared de facto border, an area that this week became the site of their deadliest clash in half a century.
Troops remain locked in a face-off at several locations along the poorly defined Line of Actual Control, despite talks between local commanders to de-escalate.
India has blamed China for starting the fight last week by developing military infrastructure in the valley.
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The Indian foreign ministry has described the fighting as a “pre-meditated and planned action” by China.
Meanwhile, the Confederation of All India Traders (CAIT), which represents some 70 million traders has asked federal and state governments to support a boycott of Chinese goods and cancel government contracts awarded to Chinese companies.
CAIT National General Secretary Praveen Khandelwal, said: “The entire nation is filled with extreme anger and intensity to give a strong befitting response to China not only militarily but also economically.”