"There are various options possible for a government. I am not for a moment speaking about confrontation but there are instruments of diplomacy available to a state," Jaitley said.
The options could be from trade pressures to raising certain issues which may put the other side on the defensive to international pressure, Jaitley told reporters here.
"Are we doing any of these or are we treating it as a non-issue? Regrettably, I get the latter impression," he said.
He said the BJP has been supporting the government on Sino-Indian border dispute, but wished to keep pressure to wake it up.
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On Gujarat Chief Minister Narendra Modi canvassing for just one day for the May five Assembly polls in Karnataka, Jaitley said it is left to an individual to decide on his availability considering the time pressure.
Asked how the party is perceiving the election sans former Chief Minister B S Yeddyurappa, Jaitley said "we hope to do better and we are going to be more cohesive.... We are cleaner, cohesive and stronger."
Reacting to Congress' comments that their corruption is notional and BJP's real, Jaitley said the party is willing for a precipitative action against their leaders even though the allegations against them are yet to be proved.
"But here you have Rs 1.76 lakh crore and Rs 1.86 lakh crore and you say it is notional. Your valuable resources - petrol and coal - have been given to some private parties, and it is notional! The government can't live in denial," he said.