"We need to take note of likely implications of China's military modernisation, improvement in infrastructure in Tibet Autonomous Region and other related issues, which could impact our security in the long run," Kapoor said in New Delhi.

Delivering the 'National Security Lecture' at the strategic affairs think tank Institute of Defence Studies and Analyses (IDSA), Kapoor said China, the largest and the most powerful neighbour, and a rapidly rising power, continued on the path of high economic growth, combined with rapid military modernisation.

In his lecture on "Changing Global Security Environment With Specific Reference to Our Region and its Impact on the Indian Army", he said, "We have differences related to the boundary question, which are being resolved by special representatives of both the governments."

Pointing out that regular visits at the highest level have further added to the dimensions of constructive engagement and mutual confidence in relationship between the two neighbours, the General said economic engagements and continued efforts to amicably resolve boundary issues had ensured peace along the border.

Later, to a query from reporters, Kapoor said Indian Army was not aware of any build up of China's People's Liberation Army (PLA) in Tibet, as some reports suggested, for an adventure inside Indian territory after Beijing Olympics.

On recent reports of incursions by PLA in Arunachal Pradesh, Sikkim and other areas along the Line of Actual Control (LAC), the Army chief reiterated the transgressions occured due to differing perceptions of LAC, and at times due to confusion among troops on ground, especially when units changed and new units got posted there.

"But that is why we have boundary negotiating teams that have been established by both India and China, which are having a constant dialogue on a regular basis," he said.