"The Nathu La route has been running well over two years and the relevant Chinese departments have already made arrangements before the incident took place," Foreign Ministry spokesman Geng Shuang told reporters here.
"Due to illegal entry of Indian troops and out of security concern, we have suspended the activity (through Nathu La). Its resumption depends on whether Indian side will correct its mistake or not.
The Nathu La route is the second one opened by China for the Indian pilgrims to visit Kailash and Mansarovar areas located at an altitude of 15,160 feet in Tibet.
Like the Nathu La route, the yatra was being organised by External Affairs Ministry since 1981 through Lipulekh pass in Himalayas connecting the Kumaon region of Uttarakhand with the old trading town of Taklakot in Tibet.
China's move cancelling the Kailash Mansarovar yatra through Nathu La in Sikkim came as a disappointment to the 800 devotees hoping to visit the high altitude area, believed to be the abode of Lord Shiva.
The pilgrimage to Kailash Mansarovar, considered holy by Hindus, Buddhists and Jains, takes place from June to September every year.