China has expressed reservations over the move of Asian Development Bank (ADB) to approve loan worth $2.9 billion to India from 2009 to 2012, terming it as interference in the political affairs of two neighbor countries.

China opposed ADB's move on the grounds that funds worth $60 million in this loan are meant to use for a watershed project in Arunachal Pradesh, the Indian state which has been an area of dispute between two countries since long.

A Chinese official said, "China expresses strong dissatisfaction to the move, which can neither change the existence of immense territorial disputes between China and India, nor China's fundamental position on its border issues with India." He asked for acceptable solution of border issues with India through bilateral dialogue.

Earlier, in March, Chinese opposition forced the bank to postpone loan for India. However, the agency, last month, approved loan following India's clear stand over the matter.
India's move to deploy more security forces along Sino-Indian border also rattled China with Chinese media termed India as a threat to the country in its latest survey.