According to official sources, the ambassador told Rajnath Singh that the boundary issue was 'sensitive matter' and there was a need for confidence building measures.
"Zhang said his country wanted to have cordial relations with India and the media reports about the incursions had aggravated the matter," the sources said.
He said the Communist Party of China and the BJP should work together to play a crucial role in building confidence.
Singh also conveyed his concerns over Chinese objection to Prime Minister Manmohan Singh's visit to Arunachal Pradesh, saying it was 'unfair'.
He told the envoy that mutual confidence had been 'dented' by the recent incursions.