The body said it has taken a strong exception to the behaviour of China, which supported Pakistan openly.
"We don't see how would China make up for its stand and continue to work on bilateral talks to promote stability within the region," it added.
The Confederation of All India Traders (CAIT) at its Governing Council meeting held yesterday decided to boycott Chinese made goods with immediate effect and this decision will be ratified at the National Traders Conclave, to be held from April 4 to April 6, 2016.
On Thursday, China had requested United Nations committee, which is considering a ban on Pakistan-based terror group Jaish-e-Mohammed chief Masood Azhar, to keep on hold the designation.
After the terror attack on Pathankot airbase on January 2, India in February wrote to the UN calling for immediate action to list Azhar under the Al-Qaeda Sanctions committee.