Most countries near China seem to have problems with the massive country at one point or another, usually involving some sort of border issues. Both sea boundaries and land boundaries remain constantly disputed with no resolutions ever seeming to be reached. This time around, India has been forced to deal with the issue, which has lead to a troop build-up on both sides of the questionable borderline in the Himalayan Ladakh region.
Previously, the two countries had some to a sort of stand-off on the issue. There was the usual political posturing, but actual military engagement seemed distant. Now, China has been pushing harder and literally moving their troops further and further into the disputed territory.
The latest accusations from India claim that the Chinese military has set up camp on the Indian side of the boundary, more than 11 miles in. China is, naturally, saying that the claim is false and that all their military are behind the proper border, in their own territory. To resolve the issue, the two countries came together, but the meetings they've had so far only seem to have escalated the problem.
China is demanding that India stop building roads and other infrastructure in the area, seeing them as a precursor to permanent military build-up. To push their point even further, Chinese military sent a helicopter into the non-disputed Indian territory, officially violating Indian airspace.
Neither side wants a war, for a number of reasons. Both countries have plenty else to deal with right now and would not want to devote the necessary resources to even a small conflict. They also happen to be major trading partners, a status that, if threatened, would cause a serious economic meltdown. Both sides have been showing evidence of the will to resolve the conflict in that they’re both insisting through official channels that there’s really nothing to worry about.
What it comes down to now, in addition to getting everyone back on their side of the border, is settling the issue while at the same time saving face for both governments. Likely this will wind down fairly quickly, though to whose advantage remains to be seen.
Disputed Territory Map courtesy of Library of Congress via Wikicommons