The village of 100 homes was picked up by satellite imagery. India claims the Chinese buildings are 2.8 miles within Indian territory. The buildings are within Arunachal Pradesh state according to India and have been there for almost a year.
The Upper Subansiri district, where the buildings are located, is an area claimed by both Beijing and Delhi.
Tensions are growing in the region and intelligence images released today showed Chinese and Indian tanks facing off in the Himalayas.
The village built by the Chinese is on the Tsari Chu River and has been the site of armed conflict between both sides over the years.
Speaking about the village in Arunachal Pradesh, the Indian Foreign Ministry said: “We have seen recent reports on China undertaking construction work.
“The work has been located along the border areas with India.
“China has undertaken such infrastructure construction activity in the past several years.
“Our government too has stepped up border infrastructure.
“This includes the construction of roads, bridges, etc.
“China has entered more than 60-70 kms (37-43 miles) inside the Upper Subansiri district.
“This can be seen if you follow the path along the river.
“They are constructing a road along the river known locally as the Lensi as it flows in the direction of the Subansiri river.”
Mr Gao also claimed China has been constructing a new double-lane road in the same region.
Speaking to NDTV, Claude Arpi, said the village’s construction “is an extraordinarily serious issue as it has many other implications elsewhere on the boundary”.