China has urged Pakistan and India to exercise restraint and resolve differences through dialogue and consultation, Foreign Ministry spokesman Guo Jiakun said on Tuesday when asked whether Beijing would step in to mediate tensions sparked by a deadly attack in the Indian-controlled Kashmir.

India said it had responded to 'unprovoked' small arms firing from Pakistan along the de facto border for the fourth consecutive night, as it deepens its search for militants in the region following last week's deadly attack on tourists in Kashmir.

China is deeply invested in Pakistan and a conflict would endanger its projects, particularly the 3000-km-long China-Pakistan Economic Corridor that connects Gwadar port to the Xinjiang region