He alleged that the UPA government at the Centre was "indecisive" over sensitive issues.
Badal said that Centre must send a high-level team to probe the issue and find out the truth.
Badal, who is also president of Shiromani Akali Dal, said, "Congress-led UPA government is indecisive even on sensitive issues like Chinese intrusion and beating up of Indian national Sarabjit in Lahore Jail."
He said that he was surprised that the "government was sleeping over reports of intrusion till Chinese entered and camped 19 km inside the Indian territory".
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"The fact is no neighbour, including a tiny nation, is scared of India these days as indecisiveness is our hallmark," Badal said.
The deputy CM said,"When all the political parties are asking the Congress-led UPA government to take strong and effective action against China, why our Prime Minister has described it as a localised issue."
"It is time for both the nations to dampen the bitterness and come forward for Sarabjit," he said.
Punjab Chief Minister Parkash Singh Badal will take up the issue of providing the best medical care to Sarabjit, the minister said.
"If need be, Punjab government will bear all the expenses of Sarabjit's treatment," he said.