China rebukes ADB over India fund China has rebuked the Asian Development Bank (ADB) for funding a project in the disputed Indian state of Arunachal Pradesh, which is claimed by Beijing. The Chinese government said the bank had "tarnished" its name with the move. A bank spokesperson told the AFP news agency that it was not taking sides in the territorial dispute. The north-eastern state of Arunachal Pradesh is at the centre of a long-standing border dispute, which Beijing claims as its own territory. The $60m (£36.5m) loan is for a flood-management programme in Arunachal Pradesh and is part of a three-year lending programme for India from the ADB worth a total $2.9bn. (£1.7bn) "China has expressed strong discontent. The action can neither change the fact that China and India have a huge territorial controversy, nor China's fundamental position on the border issues between China and India," a foreign ministry spokesman told a news conference on Thursday. The ADB said that the organisation's charter stated that only economic considerations - and not political affairs - should be relevant to its decisions, the AFP news agency reported. Ties between China and India - who fought a brief border war in 1962 - have improved lately, with both sides saying that they are eager to expand trade. BBC NEWS/south Asia/19-June-2009 Now china will dictate free business institutions how to work. This is so pathetic. Chines mentality to think that world is like a public swimming pool where balder control is optional; is going to be a big misadventure for long run.