China blocked a joint move by the U.S., the U.K. and France in the UN to list Jaish-e-Mohammed (JeM) chief Masood Azhar as global terrorist "conditions" have not yet been met.
It is the third time that China has placed a technical hold for such attempts.
The joint proposal to ban the Pakistan-based Pathankot attack mastermind came weeks after India's bid to get Azhar banned by the UN were scuttled by Beijing last December.
China's foreign ministry spokesman Lu Kang revealed that that Beijing wanted the "relevant parties" to consult with each other.
He added that this is in line with rules of the relevant resolutions of the Security Council and the rules of the discussion of the committee.
Lu added that there was no consensus reached when the UN Security Council discussed the issue. He added that Beijing and New Delhi "have exchanged views" on the issue and that they hope it will not have a negative impact on their relations.
Reacting to the criticism that China is blocking the move at the behest of Pakistan, Lu said that their action is in line with the regulations and procedures.
India has issued a diplomatic missive to China regarding its continued block on moves to Azhar.
India's Ministry of External Affairs (MEA) confirmed on Thursday that demarches had been served to the Chinese embassy in New Delhi and in the foreign office in Beijing by the Indian embassy.
Responding to Lu's statement that there was "no consensus",MEA spokesperson Vikas Swarup said that if China changes its position, there will be a consensus.
Swarup also refuted the Chinese stand that India and Pakistan should talk to each other on the issue saying that the matter is not bilateral matter between the two countries but as an issue of global counter-terrorism. He added that India hopes that China will eventually accept this view.
The Pathankot attack was committed on Jan. 2, 2016 by a heavily armed group against the Pathankot Air Force Station of the Indian Air Force that resulted in numerous deaths from among attackers and security forces. The attack received wide international condemnation.