Anurag Thakur, India's Minister of Information and Broadcasting, Youth Affairs, and Sports, postponed his trip to China on Friday.
The move is a protest after three Indian wushu players, Nyeman Wangsu, Onilu Tega, and Mepung Lamgu, were denied admission into China, according to the Ministry of External Affairs.
The remainder of the Indian Wushu squad, which comprised seven more players and staff members, travelled to Hong Kong and then to Hangzhou, China.
"Government of India reserves the right to take suitable measures to safeguard our interests," the Ministry of External Affairs said.
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"India rejects differential treatment of Indian citizens on domicile basis," a statement from the MEA read, on China denying accreditation to sportspersons from Arunachal Pradesh.
Furthermore, the MEA stated that "China's action violates the spirit of Asian Games, as well as the rules governing their conduct."
The Indian players were returned to the Sports Authority of India dormitory at Jawahar Lal Nehru Stadium in Delhi.
According to a prominent source in China with the Wushu squad, they have raised the issue with the Asian Games organising body as well as the OCA (Olympic Council of Asia).
They expressed optimism that the situation will be handled quickly.