His spokesperson Stephane Dujarric said on Wednesday: "We are obviously looking at the situation and we would urge all the parties involved to avoid any action that would make the situation more tense."

Asked at his daily briefing about US President Donald Trump's offer to "mediate or arbitrate" the dispute between the two Asian giants, he said: "That would be for the parties involved to decide who they would want to mediate. This is not for us to opine."

Indian and Chinese troops are in a standoff along the Line of Actual Control in the western sector in Ladakh, where China's People's Liberation Army has reportedly moved two brigades.

Trump had tweeted on Wednesday, "We have informed both India and China that the United States is ready, willing and able to mediate or arbitrate their now raging border dispute. Thank you!"

This was Trump's latest attempt to project himself as an international statesman by inserting himself into disputes that India is embroiled in.

He has offered to mediate or arbitrate between India and Pakistan and even claimed that Prime Minister had asked him to.

India has denied that such a request was ever made.