The US' remarks came a day after Indian border guards foiled an attempt by Chinese soldiers to enter Indian territory along the banks of famous Pangong lake in Ladakh.
The latest skirmish comes at a time when India and China are locked in a face-off in the Doklam area of the Sikkim sector. The standoff has been ongoing for more than 50 days, after Indian troops stopped the Chinese Army from building a road in the area.
"We are encouraging both parties to sit down and have a direct dialogue," State Department Spokesperson Heather Nauert told reporters at a news conference.