As it has done in the past, Beijing put a technical hold on the proposal just as the deadline was about to end.
The invitation to the "Dalai Lama for activity in the disputed areas between China and India will only damage peace stability of the border areas as well as the bilateral relationship between China and India", Chinese foreign ministry spokesman Lu Kang.
China said that it had put off the visit of Indian pilgrims who enter Tibet via the Nathu La pass "for safety reasons" in view of the border issue.
Lu said China will take 'further action' to safeguard its sovereignty.
Obama met the 80-year-old spiritual leader in the historic Map Room of the White House. The meeting was closed for the press.
India hit out at China for its remarks that there was no consensus over the United States' proposal to ban Pathankot attack mastermind and Jaish-e-Mohammed is chief Masood Azhar at the United Nations
A significant bid by the United States in the United Nations for designating Pathankot attack mastermind Masood Azhar as a global terrorist has been stymied by China which has again opposed the ban against the Pakistan-based Jaish-e-Mohammed chief.
The move was aimed at 'reaffirming China's claim over the state'. China claims the state as 'South Tibet'.
China on Wednesday said the US' naval and air incursions in the artificial islands in the South China Sea will be counter-productive leading to "miscalculation" and "crisis", as Beijing summoned the American ambassador to protest the US Navy's sailing of a warship into the disputed waters.
Under the policy, the US recognises and has formal ties with China rather than the island of Taiwan, which China sees as a breakaway province to be reunified with the mainland one day.
India brought in more troops after the destruction of two of its bunkers and "aggressive tactics" adopted by the Chinese People's Liberation Army
China also hinted that India was objecting to its efforts to build the road in Donglang area of the Sikkim sector on behalf of Bhutan.
An international tribunal in the Hague has ruled in favour of the Philippines.
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